Tuesday brought a wild dance to global stock markets, as President Trump spun a new tariff tune, threatening steep levies on dozens of countries but graciously pushing the start date to August 1. The S&P 500 did a little jig upward in early trading, while Japan and South Korea, facing a hefty 25 percent tariff, joined the party with their indexes climbing too.
It’s a peculiar performance—markets swaying to the rhythm of Trump’s on-again, off-again trade threats, which have turned Wall Street into a soap opera with more plot twists than a daytime drama.
Investors seem to have memorized this choreography by now. Markets dip when Trump waves his tariff wand, only to pirouette back up when he extends deadlines or hints at flexibility. Analysts at IG Group noted that traders are betting on either a vague “deal” being announced or another deadline extension, letting Trump claim victory without breaking a sweat.
In Japan, the markets stumbled into what locals dubbed the “Yaskawa Shock,” after Yaskawa Electric, a big shot in industrial robots, admitted its profits might take a nosedive this year. The company, which sells heaps to the U.S. and China, had been all sunshine and rainbows with a 20 percent profit growth forecast before Trump’s tariff threats rained on their parade.
Analysts at SMBC Nikko predict a 5 percent profit hit for Japan’s corporate giants, but they shrugged it off, saying the market impact will be “limited” since Trump’s latest tariff rates mirror his April proposals.
South Korea’s economy felt the tariff tremors too, with Samsung Electronics reporting a jaw-dropping 56 percent profit plunge in the second quarter compared to last year. Yet, in a plot twist worthy of a K-drama, South Korea’s benchmark stock index strutted up 1.8 percent on Tuesday. It’s as if the market decided to ignore the bad news and keep dancing to its own beat.
Across the pond, U.S. analysts are putting on their rose-colored glasses, upgrading their market outlooks despite the tariff tango. Bank of America and Goldman Sachs raised their S&P 500 forecasts, pointing out that big companies have buffer inventories to cushion the tariff blow. Goldman’s number crunchers suggested that corporate bosses can juggle cost cuts, supplier switches, and price tweaks to keep their profits from face-planting.
The markets have seen this show before—earlier this year, a tariff scare sent stocks tumbling, only for them to bounce back to record highs last month. It’s a rollercoaster ride, but investors seem to have their safety harnesses on, ready for the next loop. Trump’s latest move, extending the tariff deadline to August 1, has traders betting on more negotiations or another delay, keeping the drama alive.
Japan’s market, still reeling from the Yaskawa Shock, is bracing for a bumpy earnings season. Yaskawa’s early report was a warning shot, signaling that U.S. tariffs could clip the wings of other Japanese firms. But with the tariff rate holding steady from earlier threats, markets are taking it in stride, at least for now.
South Korea’s Samsung, meanwhile, is dealing with its own blockbuster flop. The 56 percent profit drop is a tough pill to swallow, especially for a tech giant that’s supposed to be the star of the show. Still, the broader market’s upbeat performance suggests investors are more focused on the tariff deadline extension than Samsung’s sob story.
The U.S. markets, ever the optimists, are banking on corporate giants to weather the tariff storm. Goldman’s analysts are practically cheering from the sidelines, confident that big companies can dodge the worst of the tariff hits. It’s a bold bet, considering Trump’s knack for keeping everyone guessing with his trade policies.
Europe’s markets, meanwhile, kept things low-key, with mixed results that barely made a splash. It’s as if they’re sitting out this round of the tariff tango, watching from the sidelines while sipping tea. The global markets are clearly used to Trump’s unpredictable rhythm, and they’re ready to keep dancing, come what may.
This whole tariff saga feels like a never-ending game of economic whack-a-mole. Trump pops up with new threats, markets duck, then pop back up when he softens the blow. With August 1 as the new deadline, traders are lacing up their dancing shoes, ready for the next spin.
Whether it’s Japan’s Yaskawa Shock, South Korea’s Samsung stumble, or the S&P 500’s cautious optimism, the markets are proving they can keep up with Trump’s tariff tempo. Investors are betting on more talks, more delays, and maybe a few more plot twists before the curtain falls. For now, the global markets are twirling through the uncertainty, hoping to avoid stepping on any tariff-shaped toes.
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