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Asia-Pacific markets swung between gains and losses Tuesday as investors assessed U.S. President Donald Trump’s latest tariff threats on 14 trading partners.
Goods exported to the U.S. from Japan, South Korea, Malaysia, Kazakhstan and Tunisia are now set to face 25% tariffs starting Aug. 1, according to the letters Trump posted on Truth Social.
Other Asia-Pacific markets facing higher tariffs include Indonesia, which will be hit with a 32% levy, Bangladesh, which was slapped with a 35% duty, as well as Cambodia and Thailand, which are set for 36% tariff rates, the president’s letters indicated.
Meanwhile, imports from Laos and Myanmar will face a 40% duty, Trump’s letters posted on Truth Social showed.
Economists at Citi Economics Research found the exclusion of regions such as Taiwan, India, the Philippines, Sri Lanka and Pakistan interesting.
“EM [emerging market] economies where we are hopeful for a framework agreement are India & Taiwan, possibly Israel, given PM Netanyahu-President Trump meeting,” the economists wrote in a Tuesday flash note.
In reference to U.S. Treasury Secretary Scott Bessent’s comments that around 100 letters will be sent to smaller countries “where we don’t have much trade,” the economists were hopeful that those that have yet to receive letters “could get minimum 10% baseline tariff.”
Analysts at Barclays, meanwhile, say “one should not be surprised” if more letters are sent out in the coming days. The surprise, however, is if “revisions to the tariff rates are large,” they wrote in a Tuesday note.
“While these tariff rates would — if implemented on 1 August — imply downside risks to our GDP growth forecasts, the new deadline also implies an extension to allow more time for negotiations,” they added.
Japan’s Nikkei 225 benchmark added 0.29% while the broader Topix index was flat.
In South Korea, the Kospi index increased by 1.47% while the small-cap Kosdaq moved up 0.46%.
Mainland China’s CSI 300 index advanced 0.74% while Hong Kong’s Hang Seng Index increased by 0.8%.
Over in Australia, the S&P/ASX 200 benchmark fell 0.23% after the Reserve Bank of Australia unexpectedly stood pat on interest rates at 3.85%.
Meanwhile, India’s benchmark Nifty 50 and the BSE Sensex were flat.
— CNBC’s Kevin Brueninger, Lisa Kailai Han and Sarah Min contributed to this report.
