Asian Markets Sink Ahead of US Tariff Deadline:Global markets turned volatile ahead of the July 9 US tariff deadline, with Asian stocks plunging and Wall Street futures pointing lower. Investors are on edge as the US plans to implement tariffs on a country-by-country basis from August 1. Conflicting signals from US officials and rising political tension around Tesla added to market jitters. Meanwhile, oil prices dropped on oversupply concerns, and Bitcoin surged toward its all-time high
Asian Markets Sink Ahead of US Tariff Deadline; Global Investors Brace for Trade Volatility
With just days remaining before the US tariff pause deadline expires on July 9, anxiety gripped global markets as investors grew cautious over the uncertain outcome of ongoing trade negotiations between Washington and its key trading partners.
Asian stock markets began the week on a weak note, tumbling sharply in early Monday trading. The broad Asian stock gauge dropped by 6%, with significant declines recorded in Hong Kong and Japan, leading the region’s downturn. The sentiment echoed a familiar déjà vu among traders, who have seen similar uncertainty in previous trade standoffs.
While Chinese equities remained relatively steady, Australia’s benchmark index declined notably, reflecting growing investor wariness. The ripple effects extended across continents, as Wall Street and European stock futures pointed to a weak open later in the day, suggesting the impact of trade tensions is far-reaching.
The market slump comes even as major US trading partners scrambled over the weekend to finalize trade agreements in a bid to avoid heavy tariffs. However, clarity remains elusive. In a press briefing, US Commerce Secretary Howard Lutnik stated that tariffs would be implemented on a “country-by-country” basis starting August 1. This selective approach adds a layer of unpredictability to global trade flows.
Adding to the uncertainty, President Donald Trump had previously warned of sending formal tariff notifications to multiple countries, with proposed tariffs ranging from 10% to 70%. He emphasized that there would be no extension to the July 9 deadline.
In contrast, Treasury Secretary Scott Pessent offered a slightly more flexible outlook, hinting that some countries may receive a three-week extension to negotiate trade deals. This lack of policy alignment has left markets jittery and investors unclear about what to expect.
Among individual stocks, Tesla emerged as a key focus for traders. The electric vehicle giant saw its shares quoted more than 6% lower in the options market. The sharp reaction comes amid fears that CEO Elon Musk’s move to form a new political party could provoke political backlash from President Trump. Similar tensions in the past have weighed on Tesla’s stock, prompting concerns about renewed volatility.
Oil markets also faced pressure. Crude prices extended their decline after the OPEC+ alliance unexpectedly agreed to a larger-than-anticipated production increase for next month. The move stoked worries about an oversupply just as new US tariffs threaten to dent global demand for energy.
Meanwhile, in the digital asset space, Bitcoin showed resilience. The original cryptocurrency surged toward its all-time high, trading above $92,000 on Monday, despite broader market caution. With traditional investors sitting on the sidelines due to geopolitical and economic concerns, more capital appears to be flowing into the crypto market, signaling growing interest in digital assets as a hedge.
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