Waterfront city skyline of Sydney city downtown at night with bright illumination of modern architectural landmarks in Sydney, Australia.
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Asia-Pacific markets traded mixed on Monday after U.S. President Donald Trump confirmed that “reciprocal” tariffs, first announced in April, will take effect on Aug. 1 for countries that haven’t struck a deal.
Trump added in a separate announcement Sunday that an additional 10% tariff would be charged to countries “aligning themselves with the anti-American policies of BRICS” without elaborating. His announcement came as the BRICS bloc of developing countries gathered in Rio de Janeiro, Brazil, for a two-day summit.
Earlier on Sunday, Treasury Secretary Scott Bessent said that tariffs introduced in April will be enforced starting August 1 for countries that haven’t finalized an agreement with the Trump administration. While Bessent dismissed the notion that August 1 represents a fresh deadline, he acknowledged that the new date could allow trading partners additional time to renegotiate tariff terms.
Japan’s benchmark Nikkei 225 slipped 0.53% while the Topix declined 0.57%. South Korea’s Kospi added 0.19% and the small-cap Kosdaq rose 0.16%.
Australia’s S&P/ASX 200 slid 0.11%.
Hong Kong’s Hang Seng index lost 0.61%, and mainland China’s CSI 300 dipped 0.12%.
The Reserve Bank of Australia kicks start its two-day meeting, where it is widely expected to cut rates by 25 basis points to 3.60%.
U.S. stock futures fell after Trump confirmed that tariffs are set to go into effect Aug. 1, not July 9. Dow Jones Industrial Average futures slid by 146 points, or 0.32%. S&P 500 futures and Nasdaq 100 futures dipped 0.39% and 0.42%, respectively.
Last Friday stateside, the three major averages closed higher. The S&P 500 and Dow Jones Industrial Average powered to new highs and capped off a winning week as banking behemoths ushered in a promising start to the third-quarter earnings season. The Nasdaq Composite added 0.33% to finish at 18,342.94 and less than 2% below its all-time high.
— CNBC’s Samantha Subin and Brian Evans contributed to this report.
