Asia-Pacific markets traded mixed on Monday after U.S. President Donald Trump confirmed that “reciprocal” tariffs, first announced in April, will take effect on Aug. 1 for countries that haven’t struck a deal.
Trump added in a separate announcement Sunday that an additional 10% tariff would be charged to countries “aligning themselves with the anti-American policies of BRICS” without elaborating. His announcement came as the BRICS bloc of developing countries gathered in Rio de Janeiro, Brazil, for a two-day summit.
Earlier on Sunday, Treasury Secretary Scott Bessent said that tariffs introduced in April will be enforced starting August 1 for countries that haven’t finalized an agreement with the Trump administration. While Bessent dismissed the notion that August 1 represents a fresh deadline, he acknowledged that the new date could allow trading partners additional time to renegotiate tariff terms.
Japan’s benchmark Nikkei 225 slipped 0.56% to close at 39,587.68 while the Topix declined 0.57% to close at 2,811.72. South Korea’s Kospi added 0.17% to end the trading day at 3,059.47 and the small-cap Kosdaq closed 0.34% higher at 778.46.
Australia’s S&P/ASX 200 slid 0.16% to end the day at 8,589.3.
Hong Kong’s Hang Seng index lost 0.61%, and mainland China’s CSI 300 dipped 0.43% to 3,965.17.
The Reserve Bank of Australia kicks start its two-day meeting, where it is widely expected to cut rates by 25 basis points to 3.60%.
U.S. stock futures fell after Trump confirmed that tariffs are set to go into effect Aug. 1, not July 9. Dow Jones Industrial Average futures slid by 146 points, or 0.32%. S&P 500 futures and Nasdaq 100 futures dipped 0.39% and 0.42%, respectively.
Last Friday stateside, the three major averages closed higher. The S&P 500 and Dow Jones Industrial Average powered to new highs and capped off a winning week as banking behemoths ushered in a promising start to the third-quarter earnings season. The Nasdaq Composite added 0.33% to finish at 18,342.94 and less than 2% below its all-time high.
CNBC