{"id":50421,"date":"2025-07-13T20:08:41","date_gmt":"2025-07-14T00:08:41","guid":{"rendered":"https:\/\/thestockmarketwatch.com\/stock-market-news\/global-markets-brace-for-trade-tensions-as-trump-imposes-new-tariffs\/50421\/"},"modified":"2025-07-13T20:08:41","modified_gmt":"2025-07-14T00:08:41","slug":"global-markets-brace-for-trade-tensions-as-trump-imposes-new-tariffs","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-brace-for-trade-tensions-as-trump-imposes-new-tariffs\/50421\/","title":{"rendered":"Global Markets Brace for Trade Tensions as Trump Imposes New Tariffs"},"content":{"rendered":"<p>Global financial markets are starting the week on a cautious note, largely overshadowed by escalating trade tensions following new tariff announcements from U.S. President Donald <a href=\"https:\/\/thestockmarketwatch.com\/live\/trump-stock-market\" data-internallinksmanager029f6b8e52c=\"8\" title=\"Trump\">Trump<\/a>. Asia-Pacific equities saw a mixed performance, with most indices on the back foot.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-brace-for-trade-tensions-as-trump-imposes-new-tariffs\/50421\/#Asia-Pacific_Markets_React_to_Tariff_Threats\" >Asia-Pacific Markets React to Tariff Threats<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-brace-for-trade-tensions-as-trump-imposes-new-tariffs\/50421\/#Escalating_Trade_Tensions_and_Oil_Prices\" >Escalating Trade Tensions and Oil Prices<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-brace-for-trade-tensions-as-trump-imposes-new-tariffs\/50421\/#Economic_Data_Highlights\" >Economic Data Highlights<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-brace-for-trade-tensions-as-trump-imposes-new-tariffs\/50421\/#Singapores_Strong_GDP_Growth\" >Singapore&#39;s Strong GDP Growth<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-brace-for-trade-tensions-as-trump-imposes-new-tariffs\/50421\/#Japans_Core_Machine_Orders\" >Japan&#39;s Core Machine Orders<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-brace-for-trade-tensions-as-trump-imposes-new-tariffs\/50421\/#Bond_Market_Movements\" >Bond Market Movements<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-brace-for-trade-tensions-as-trump-imposes-new-tariffs\/50421\/#Corporate_Developments_Tesla_and_xAI\" >Corporate Developments: Tesla and xAI<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-brace-for-trade-tensions-as-trump-imposes-new-tariffs\/50421\/#Political_Commentary_from_President_Trump\" >Political Commentary from President Trump<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Asia-Pacific_Markets_React_to_Tariff_Threats\"><\/span>Asia-Pacific Markets React to Tariff Threats<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Markets across Asia-Pacific opened with a degree of trepidation as President <a href=\"https:\/\/thestockmarketwatch.com\/live\/trump-stock-market\" data-internallinksmanager029f6b8e52c=\"8\" title=\"Trump\">Trump<\/a> announced new 30% tariffs on imports from the European Union and Mexico, set to commence on August 1st. This move intensified global trade frictions, impacting investor sentiment. The ASX 200 declined by 0.2%, while Japan&#39;s Nikkei 225 (NKY:IND) fell by 0.4%. In contrast, South Korea&#39;s KOSPI (KOSPI:IND) managed a slight gain of 0.2%. Japan&#39;s Nikkei futures were also down 0.3% in early trade.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Escalating_Trade_Tensions_and_Oil_Prices\"><\/span>Escalating Trade Tensions and Oil Prices<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The imposition of 30% tariffs on the EU and Mexico from August 1st marks a significant escalation in global trade tensions. President Trump stated that the EU&#39;s relationship with the U.S. has been &quot;far from reciprocal&quot; and that the 30% tariff is &quot;far less than what is needed to eliminate the Trade Deficit disparity&quot;. He also warned that if the EU retaliates with reciprocal tariffs, those numbers would simply be added to the U.S.&#39;s 30% rate.<\/p>\n<p>Beyond the EU and Mexico, markets are also bracing for potential major U.S. actions against Russia, with threats of 500% tariffs on China and India if they continue to purchase Russian energy. This broad tariff strategy by the Trump administration has already seen the average U.S. tariff rate rise significantly in 2025.<\/p>\n<p>In response to these heightened trade tensions, oil prices saw an increase, as the tariffs threaten global demand and supply chains.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Economic_Data_Highlights\"><\/span>Economic Data Highlights<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Singapores_Strong_GDP_Growth\"><\/span>Singapore&#39;s Strong GDP Growth<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>In more positive news, Singapore&#39;s economy demonstrated stronger-than-expected growth in the second quarter of 2025. The nation&#39;s Q2 GDP rose by 4.3% year-on-year, surpassing the estimated 3.6%. On a quarter-on-quarter basis, GDP increased by 1.4%, also beating the 0.8% estimate. This robust economic performance led to the Singapore Dollar (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=SGD\">SGD<\/a>) edging up to S$1.2799. Despite this strong Q2 performance, economists still anticipate full-year GDP growth for Singapore to be around 2.4% for 2025.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Japans_Core_Machine_Orders\"><\/span>Japan&#39;s Core Machine Orders<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Japan&#39;s May Core Machine Orders showed a mixed picture. Month-on-month, orders fell by 0.6%, which was better than the estimated -1.5% and a significant improvement from the prior month&#39;s -9.1% decline. However, on a year-on-year basis, core machine orders rose by 4.4%, falling short of the estimated 5.2% and below the previous 6.6% growth. This data is a key indicator of capital spending and business investment intentions.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Bond_Market_Movements\"><\/span>Bond Market Movements<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In the bond market, Japan\u2019s 10-year JGB (Japanese Government Bond) yield rose by 3 basis points to 1.53%. Concurrently, benchmark 10-year JGB futures fell by 0.27 point in early trade.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Corporate_Developments_Tesla_and_xAI\"><\/span>Corporate Developments: Tesla and xAI<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Elon Musk announced that Tesla (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=TSLA\">TSLA<\/a>) shareholders will vote on whether the company should invest in his artificial intelligence venture, xAI. Musk stated that if it were solely his decision, Tesla would have already invested, as xAI is reportedly seeking a $200 billion valuation. This comes amid concerns among some Tesla shareholders about Musk&#39;s dedication to the EV maker given his various ventures.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Political_Commentary_from_President_Trump\"><\/span>Political Commentary from President Trump<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>President Trump also made several notable comments. He reiterated his critical stance on Federal Reserve Chair Jerome Powell, stating, &quot;I hope he quits. He should quit because he has been very bad for this country,&quot; and adding that it would be a &quot;good thing&quot; if Powell were to step down.<\/p>\n<p>On international relations, Trump mentioned that South Korea is &quot;eager to make a deal&quot;. This follows previous reports of Trump threatening 25% tariffs on Japan and South Korea, and South Korea&#39;s new President Lee Jae-myung agreeing to work for a swift tariff deal with Trump.<\/p>\n<p>Finally, President Trump stated he spoke with Deputy FBI Director Dan Bongino and believes he is &quot;in good shape&quot;. This comment comes amidst reports of internal clashes within the Trump administration regarding the handling of Jeffrey Epstein files, with Bongino reportedly considering resignation over the dispute.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Global financial markets are starting the week on a cautious note, largely overshadowed by escalating trade tensions following new tariff 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