Trump’s new 25% tariffs on Asia spark trade tensions, but markets stay calm as investors anticipate future bullish trends.
China faces an August 12 deadline to strike a trade deal or risk deeper tariffs, while U.S. duties already average 51.1% on imports.
Vietnam’s new trade pact with the U.S. signals a regional shift, reducing reliance on China and redrawing Asia’s supply chain map.
Doctor Profit, a crypto analyst, observed no major market reaction after Trump reimposed steep tariffs on Japan and South Korea. He believes investors have already priced in worst-case scenarios, including potential global conflict. Meanwhile, rising money supply points to bullish momentum for both stocks and crypto in the months ahead.
Trump’s administration confirmed a 25% tariff hike on Asian imports, targeting Japan, South Korea, and China. These new duties will start on August 1. Previously, Trump had delayed most of the planned increases, keeping rates at 10% to give countries time to negotiate. However, with little progress made, the U.S. is now taking a harder stance.
China Faces Rising Pressure as Deal Deadline Nears
Beijing remains under pressure to strike a deal before August 12. If no agreement is reached, Washington plans to reinstate earlier trade curbs. China’s state-run newspaper, People’s Daily, published a stern warning through its foreign policy voice, “Zhong Sheng.” The article emphasized that talks are necessary and labeled U.S. tariffs as “bullying.”
Moreover, China hinted at taking strong retaliatory steps. Observers now expect another round of tit-for-tat tariff hikes. As it stands, the U.S. charges an average 51.1% duty on Chinese goods. In return, China imposes an average of 32.6% on American imports. This data, sourced from the Peterson Institute, shows how strained the trade balance has become.
Smaller Asian Economies Shift Toward U.S. Trade Deals
Additionally, the new U.S. tariffs are shaking up regional alliances. Vietnam recently reached a separate agreement with Washington. It agreed to slash its import tariff to 20%, down from 46%. However, the deal includes a 40% tariff on goods “transshipped” from China through Vietnamese ports. Hence, the U.S. aims to prevent rerouted Chinese exports from avoiding duties.
Beijing criticized countries trying to bypass China in regional supply chains. It views these moves as threats to its market dominance. However, many Asian economies are eager to secure access to the world’s largest market. The competition is reshaping global trade dynamics.
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