The Trump administration has announced the first wave of tariff figures, with both Japan and South Korea facing steep 25% tariffs. Surprisingly, however, Japanese and South Korean stock markets edged higher in early trading on the 8th. Experts believe the announced figures may be more of a negotiating tactic and urge investors not to panic sell.
According to multiple foreign media sources, the Trump administration has notified 14 countries of the tariff rates. Among them, Japan and South Korea will face 25% tariffs, Bangladesh 35%, and Myanmar 40%. However, the implementation date has been postponed from the originally planned July 9 to August 1.
On CNBC’s “Mad Money,” renowned financial commentator Jim Cramer stated that Trump’s newly announced tariffs likely carry little actual significance. He believes the real aim is to "negotiate with countries that truly need access to our market" and advised investors not to panic over the announcement.
Cramer pointed out that the Trump administration has repeatedly delayed or reduced tariffs in the past. Most observers believe the newly announced high tariffs are unlikely to take effect and may not impact inflation or Federal Reserve decisions as much as investors fear.
Despite the looming threat of steep tariffs, Asian stock markets performed relatively well on the morning of the 8th. As of press time, Japan’s Nikkei 225 and South Korea’s KOSPI index were both slightly up.
Trump’s tariff policy has been unpredictable, often featuring bold threats that fail to materialize. This has given rise to the popular "TACO trade" — an acronym for “Trump Always Chickens Out” — among market watchers.
While the U.S. has signed trade deals with the U.K. and Vietnam, negotiations with Japan and the European Union remain stalled. Trump recently criticized Japan for taking a hardline stance and for its minimal purchases of American rice and automobiles.
This week, Trump also threatened to impose an additional 10% tariff on countries aligning with the BRICS bloc’s perceived anti-American stance. However, he did not specify what qualifies as an "anti-American policy," suggesting the statement may have stemmed from frustration over BRICS leaders’ criticisms of U.S. tariff measures.
