Trump Delays Tariff Hike
President Donald Trump has officially postponed a scheduled tariff increase on Chinese imports by 90 days, giving negotiators extra room to strike a deal. The move averts a jump in duties from 30% to higher rates and prompted Beijing to reciprocate by delaying its own planned tariff hikes on U.S. goods. Analysts say the extension offers breathing space, but uncertainty for businesses still lingers.
Asian Markets Show Mixed Reaction
Asian stocks mostly edged higher on Tuesday, with Japan’s Nikkei 225 soaring 2.6% to a record 42,942.14 as Toyota rose 3.3%. The Shanghai Composite gained 0.3% to 3,658.62, while Hong Kong’s Hang Seng slipped 0.2%. Elsewhere, South Korea’s Kospi rose 0.6%, and Australia’s S&P/ASX 200 was nearly flat. The relief rally reflects optimism, but the short window for progress keeps investors cautious.
U.S. Markets Await Inflation Data
In the U.S., stocks dipped Monday ahead of key inflation figures. The S&P 500 fell 0.3% to 6,373.45, the Dow dropped 0.5% to 43,975.09, and the Nasdaq slipped 0.3% to 21,385.40. Economists expect July’s consumer price index (CPI) to rise 2.8% year-over-year, above June’s 2.7%. A hotter CPI could influence Federal Reserve rate-cut expectations, keeping markets on edge.
Dollar Holds Firm
The U.S. dollar retained strength, with the dollar index at 98.497 after recent gains. It rose 0.1% to ¥148.28 against the yen, while the euro hovered at $1.1615. Traders anticipated the tariff delay, focusing instead on how Fed policy might shift. Earlier weakness in the dollar came after Trump floated dovish candidates for Fed leadership, boosting expectations of monetary easing.
Trade & Tech Still Intertwined
Despite the pause in tariff escalation, trade tensions remain intertwined with tech policy. A U.S. official revealed that Nvidia and AMD will allocate 15% of China-related sales revenue to the U.S. government in exchange for certain export licenses. The deal underscores that semiconductor policy is still at the heart of U.S.-China negotiations. For now, the tariff delay offers a temporary market boost, but the real test is whether talks turn this pause into lasting stability.
