Markets tread water as Trump’s tariff threats continue to reshape global trade landscape
Wall Street closed mixed on Tuesday as Trump’s latest trade salvos kept investors on edge. The S&P 500 slipped 0.07%, the Nasdaq 100 squeezed out a 0.03% gain, while the Dow Jones fell 0.37%.
Trump’s bombshell 50% copper tariff sent US futures soaring over 10% to record highs. But London and Shanghai copper futures tumbled as traders realised there’s no time to ship the metal stateside before tariffs hit. Pharma faces 200% levies, while semiconductor tariffs loom.
The US dollar flexed its muscles, hitting 147.19 against the Japanese yen – its strongest since 20 June. The dollar index climbed to 97.602 as Trump warned he’s “days away” from sending a tariff letter to the EU.
Asian markets told different stories. Japan’s Nikkei 225 gained 0.3% and Korea’s KOSPI jumped 0.5%, helped by the weak yen and policy hopes. But Australia’s ASX 200 dropped 0.5% and Hong Kong’s Hang Seng lost 0.7%.
Energy was Tuesday’s star performer, surging 2.72% on elevated oil prices, though crude has since retreated. Brent fell 22 cents to $69.93, while WTI dropped 23 cents to $68.10.
Tesla bounced back 1.3% after Monday’s hammering, while Moderna rocketed 8.8% on vaccine developments. Solar stocks crashed as Trump moved to axe renewable tax credits – SunRun plummeted 11.4%.
The real question is whether Trump’s 1 August deadline will prove as flexible as his previous “firm, but not 100% firm” stance suggested. With only two deals struck since April’s “Liberation Day” chaos, markets seem increasingly immune to the president’s negotiating theatre.
The contrast with April’s volatility is stark. Back then, the Nasdaq plunged into bear market territory. Now, indices hover near all-time highs, suggesting investors are giving Trump’s tactics the benefit of the doubt.
Gold slipped another 0.3% to $3,292 as the dollar’s strength continues to weigh on the precious metal.
