Asia-Pacific markets traded mixed on Monday after U.S. President Donald Trump reaffirmed that “reciprocal” tariffs, first announced in April, will come into effect on August 1 for countries that have not yet reached a trade deal with the United States. In a separate statement on Sunday, Trump added that an additional 10% tariff would be imposed on countries “aligning themselves with the anti-American policies of BRICS,” without offering further clarification. The announcement coincided with the BRICS summit currently underway in Rio de Janeiro, Brazil.
Earlier the same day, U.S. Treasury Secretary Scott Bessent stated that the tariff enforcement from August 1 should not be seen as a new deadline but rather as a grace period allowing trading partners more time to renegotiate terms. The initial round of tariffs had been introduced in April.
In market reactions across the region, Japan’s benchmark Nikkei 225 fell 0.53% while the broader Topix index declined by 0.57%. South Korea’s Kospi managed a modest gain of 0.19%, with the Kosdaq rising 0.16%. Australia’s S&P/ASX 200 edged down 0.11% as the Reserve Bank of Australia began its two-day monetary policy meeting, where a 25 basis point rate cut to 3.60% is widely expected. Meanwhile, Hong Kong’s Hang Seng index slipped 0.61%, and mainland China’s CSI 300 dipped by 0.12%.
U.S. stock futures also moved lower following Trump’s comments. Futures tied to the Dow Jones Industrial Average dropped 146 points, or 0.32%. S&P 500 futures were down 0.39%, and Nasdaq 100 futures declined 0.42%.
Despite the current jitters, Wall Street closed higher last Friday, with the S&P 500 and Dow Jones Industrial Average hitting new records as financial giants kicked off the third-quarter earnings season on a strong note. The Nasdaq Composite rose 0.33% to finish at 18,342.94, just under 2% away from its all-time high.