Asian Markets Set for Worst Week Amid U.S. Tariff Surge

SYDNEY

Asian shares are on track for their worst weekly performance since April after the U.S. imposed steep new tariffs on several trading partners. President Donald Trump signed an executive order raising duties to 25% on Indian goods, 20% on Taiwanese, 19% on Thai, and 15% on South Korean exports. Canada also faces increased tariffs, while Mexico received a 90-day reprieve.

The MSCI Asia-Pacific index outside Japan dropped 1.1%, bringing weekly losses to 2.2%. South Korea’s KOSPI plunged 3.5%, while indices in Japan, Taiwan, China, and Hong Kong all slipped.

Investor sentiment weakened further as Amazon’s underwhelming earnings sent its shares down 6.6% in after-hours trading, dragging Nasdaq and S&P 500 futures lower by 0.2%. European futures also pointed to a weak open.

Markets are now focused on upcoming U.S. jobs data, seen as a key factor for a potential Fed rate cut in September. Current odds of a rate cut have fallen to 39%, down from 65% earlier in the week. The dollar, buoyed by fading rate cut hopes, posted its strongest weekly gain in nearly three years.

U.S. inflation ticked up in June, driven by tariffs, raising concerns about rising price pressures. Treasury yields remained steady, while the yen slid sharply as the Bank of Japan held rates but sounded dovish.

Oil and gold prices were mostly flat, with U.S. crude at $69.36 and gold at $3,294 an ounce. Investors remain wary as trade tensions escalate and economic uncertainty deepens globally.