here’s a rewritten version of the article, aiming for 100% uniqueness while retaining the core data and expert opinions:
Global Markets Brace for Tariff Uncertainty as New Trade Landscape Emerges
The recent imposition of tariffs is sending ripples through global economies, prompting analysts to closely monitor upcoming economic and earnings data for a clearer picture of the potential impact. While the measures may not entirely halt the upward trajectory of equity markets, they are expected to fuel continued volatility and potentially cap further gains as uncertainty surrounding the tariff’s long-term effects persists.
tony Sycamore,a market analyst at IG in Sydney,noted the initial market reaction has been relatively subdued. He attributes this to several factors, including recent trade agreements with the EU, Japan, and South Korea, which have provided a buffer. Additionally, Mexico’s 90-day reprieve and President Trump’s optimistic outlook on trade talks with China have contributed to a sense of cautious optimism. Sycamore suggests that markets may be anticipating further negotiations, believing that current tariff levels could be adjusted downwards over time, drawing a parallel to past “Taco trade” situations were initial market reactions were later revised.
Illiana Jain, an economist at Westpac in Sydney, highlighted the ongoing ambiguity surrounding the finality of these tariff rates.She believes the muted market response reflects a “wait-and-see” attitude, with investors questioning the definitive nature of the announcements and the potential for further negotiations. While acknowledging that the tariffs appear to be in place for now, with a stated deadline of August 1st, Jain anticipates significant efforts from affected countries to challenge these rates.
Charu Chanan, chief investment strategist at Saxo in Singapore, described the tariff announcement as providing clarity in form but not in substance. she pointed out the lack of transparency in the logic behind the specific rates applied to different countries. Chanan views these broad measures not as a singular fix but as the harbinger of a new global trade order characterized by unpredictability rather than established structure. She sees no clear winners, with the US administration potentially claiming a political victory but facing economic consequences in the form of higher consumer prices, disrupted supply chains, and slower economic growth. Even countries that received less severe tariff rates are likely to experience challenges due to a fractured trade environment and fluctuating policy frameworks. Chanan suggests that defensive stocks and domestically focused sectors might attract investment as capital shifts away from globally exposed companies, framing this as a “damage control” strategy rather than a thematic investment possibility.
Jeff Ng, head of asia macro strategy at SMBC in Singapore, indicated that the tariffs largely fell within his expectations, with rates closer to the lower end of his predicted range of 20% to 30%. He observed that the strengthening of the US dollar in the preceding week had already factored in some of these developments. ng anticipates ongoing adjustments to tariff rates between now and potentially next year, with President Trump likely to continue making changes.Reuters
