Logo of Phnom Penh Post newspaper Phnom Penh Post - Markets in Asia rise after Trump tariff threat

Markets in Asia rise after Trump tariff threat

Markets in Asia rise after Trump tariff threat

Asian markets mostly rose on Tuesday after Donald Trump said he would hit China with another round of tariffs but give some room for talks before jacking them to the highest rate.

The latest volley from the White House will see $200 billion worth of goods taxed at 10 per cent from September 24, going up to 25 per cent from January 1 if the sides are unable to hammer out a deal.

Trump also warned that another $267 billion had been lined up if Beijing retaliates.

With $50 billion of goods already being hit, that would mean Washington will have subjected virtually all goods China ships to the US to tariffs.

China on Tuesday warned it would “take countermeasures”, adding that the “US insists on increasing tariffs, which brings new uncertainty to the consultations between the two sides”.

‘Room to negotiate’

After an early sell-off, Asian markets enjoyed a bounce on hopes officials from the world’s top two economies will be able to thrash out an agreement before the end of the year.

The optimism has been boosted by the fact Trump left off some key items from the latest target list, while he is also due to meet Chinese President Xi Jinping in November and will likely want a deal in place.

“While the US tariffs salvo is hardly middling, it’s not as bad as it could have been, so unless China hits with draconian measures, markets should remain supported after this morning’s knee-jerk reactions,” said Stephen Innes,
head of Asia-Pacific trading at OANDA.

“Ultimately the graduated tariff hike allows more room to negotiate before the thumping 25 per cent levy gets triggered, so perhaps China may temper their response accordingly.”

By the end of the day Shanghai had rallied 1.8 per cent and Tokyo was up 1.4 per cent, while Hong Kong gained 0.6 per cent. Seoul gained 0.3 per cent.

However, Sydney dipped 0.4 per cent and Singapore 0.1 per cent.

MOST VIEWED

  • Hun Sen: Full country reopening to be decided in two weeks

    Prime Minister Hun Sen has announced that if the Covid-19 situation remains stable for 15 consecutive days from the end of the October 5-7 Pchum Ben public holiday, Cambodia will reopen fully, albeit in the context of Covid-19 whereby people have to adjust their lives to

  • Phnom Penh governor: Show Covid-19 vaccination cards, or else

    Phnom Penh municipal governor Khuong Sreng late on October 5 issued a directive requiring all people aged 18 and over and the parents of children aged 6-17 to produce Covid-19 vaccination cards when entering schools, markets, malls, marts, eateries and other business establishments that have been permitted

  • Cambodia seeks probe into 'false reports' on Hun Sen's alleged Cypriot passport

    Minister of Justice Koeut Rith on September 6 wrote a letter to his Cypriot counterpart Stephie Dracos requesting cooperation in investigating and providing the truth in relation to the "exaggerative and false allegations" that Prime Minister Hun Sen holds a Cypriot passport. In his letter, the

  • 'Pandora Papers' expose leaders' offshore millions

    More than a dozen heads of state and government, from Jordan to Azerbaijan, Kenya and the Czech Republic, have used offshore tax havens to hide assets worth hundreds of millions of dollars, according to a far-reaching new investigation by the International Consortium of Investigative Journalists (

  • Will Evergrande change the way Chinese developers do business in Cambodia?

    China’s property sector policy has exposed the grim financial condition of real estate developers including those operating in Cambodia, which raises questions over the viability of their projects and business going forward The dark blue netting draping over one of Yuetai Group Co Ltd’

  • Cambodia voted ‘world’s friendliest country’ in Rough Guides reader poll

    Cambodia ranked number one among the “World’s Friendliest Countries”, according to a reader poll conducted by London-based international website “Rough Guides”. Taking submissions through Twitter and Facebook, “Rough Guides”, a well-known travel agency and publisher of guidebooks, said the Kingdom “was by far the