Markets Wobble Amid U.S. Tariff Uncertainty

​Asian stock markets dipped as uncertainty swirled around U.S. tariff policies, with officials announcing a delay in implementing new tariffs but providing scant details. President Donald Trump indicated that trade agreements with several nations are nearing completion, with notifications for higher tariffs set for July 9, effective from August 1. The lack of clarity on which countries face these changes, combined with Trump’s mention of potential tariff rates ranging from 10% to as high as 70%, left investors cautious. This ambiguity led to modest declines, with Japan’s Nikkei and South Korea’s stock index falling 0.3% and 0.7%, respectively, while MSCI’s Asia-Pacific shares index outside Japan slipped 0.1%.

Oil markets faced downward pressure after OPEC+ announced a larger-than-anticipated production increase of 548,000 barrels per day for August, with hints of a similar hike in September. Perceived as an attempt to challenge lower-margin producers, particularly U.S. shale, this move pushed Brent crude down 52 cents to $67.78 per barrel and U.S. crude by $1.01 to $65.99 per barrel. The increased supply added to market unease, contributing to a cautious sentiment across global financial hubs.

The U.S. dollar remained near a four-year low at 96.913, reflecting investor concerns over the economic impact of erratic trade policies. Safe-haven assets like 10-year Treasury bonds saw yields dip slightly to 4.326%. Currency markets showed little movement, with the euro steady at $1.1787 and the dollar weakening to 144.38 yen. As trade tensions linger and the Federal Reserve holds off on rate cuts, markets await further clarity from upcoming economic data and central bank decisions, including an expected rate cut from the Reserve Bank of Australia to 3.60%

Global markets are on edge as the U.S. nears the Wednesday deadline for negotiating “reciprocal” tariffs, following a 90-day pause on elevated rates announced in April. President Donald Trump has secured trade deals with the UK and Vietnam, but talks with Canada have collapsed, and uncertainty persists for other nations. Without new agreements, tariffs could revert to April levels, or the deadline might be extended again. This ambiguity has kept investors cautious, even as the S&P 500 and Nasdaq hit record highs last week, with the Dow close to its peak, buoyed by a strong U.S. jobs report and a new taxation-and-spending bill signed into law.