Global Markets Rally Despite Trump’s Sharp Warning to Japan
Global stock markets edged higher on Wednesday, shrugging off fresh trade tensions after Donald Trump warned that Japan could face tariffs of up to 35%.
The U.S. President struck a confrontational tone, telling reporters aboard Air Force One that Japan “should pay 30%, 35% or whatever the number is that we determine,” citing a substantial U.S. trade deficit with the country. The warning comes after Japan was previously hit with a 24% tariff in April during what Trump labelled “Liberation Day” — a rate that was later reduced to 10% for a 90-day negotiation window.
With that deadline fast approaching on July 9th, Trump made it clear he is not inclined to offer more time. “I’m not thinking about the pause,” he said, adding, “I could be writing letters to a lot of countries.”
Japan has yet to issue a formal response. At a press conference on Wednesday, officials declined to comment on Trump’s latest remarks.
Despite the heightened rhetoric, markets appeared broadly unfazed. The FTSE 100 (^FTSE) in London ticked up 0.1% in early trade, while Germany’s DAX (^GDAXI) and France’s CAC (^FCHI) both climbed 0.2%. The pan-European STOXX 600 (^STOXX) was also up by 0.1%.
In the U.S., stock futures pointed to a positive open. Futures for the S&P 500 (ES=F), Dow Jones (YM=F), and Nasdaq (NQ=F) were all trading higher.
The pound slipped 0.2% against the dollar (GBPUSD=X), trading at 1.3712, as investors weighed both U.S. trade policy uncertainty and domestic economic pressures.
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