Asia-Pacific Markets Mixed as Trump Confirms New Tariffs Targeting BRICS-Aligned Countries

Picture Credit: Green Queen Media

Asia-Pacific markets traded mixed on Monday following U.S. President Donald Trump’s confirmation that “reciprocal” tariffs will officially take effect on August 1 for countries that haven’t secured a deal with the United States. The announcement came amid renewed geopolitical tension and the BRICS summit in Rio de Janeiro, where developing nations are discussing alternatives to Western-led economic frameworks.

In an unexpected addition, Trump declared a 10% tariff on countries “aligning with anti-American policies of BRICS,” though he did not specify which nations this would impact. Treasury Secretary Scott Bessent reiterated that August 1 is not a hard deadline but a date by which trading partners should ideally revise terms to avoid penalties.

Market Snapshot:

• Japan’s Nikkei 225 dropped 0.56% to close at 39,587.68, and the Topix fell 0.57%.

• South Korea’s Kospi gained 0.17%, closing at 3,059.47, while Kosdaq rose 0.34%.

• Australia’s S&P/ASX 200 slipped 0.16% to end at 8,589.3, with the RBA expected to cut interest rates by 25 basis points to 3.60% during its two-day meeting.

• Hong Kong’s Hang Seng declined 0.61%, and China’s CSI 300 dipped 0.43% to 3,965.17.

The tariff confirmation spooked investors globally. Dow futures fell 146 points (-0.32%), while S&P 500 and Nasdaq 100 futures slipped 0.39% and 0.42%, respectively.

Despite the tariff worries, Wall Street had a strong close last Friday. The S&P 500 and Dow Jones both hit record highs as Q3 earnings season kicked off with strength from banking giants. The Nasdaq Composite rose 0.33%, nearing its all-time high.

As global leaders digest Trump’s evolving trade stance and await the RBA’s rate decision, markets are likely to remain on edge heading into August.