 "Asian markets on Monday remained mixed as investors attempted to calibrate strategies in preparation for the Trump tariffs expected to come into effect on April 2. File image/Reuters")
Asian markets struggled for direction on Monday (March 24) as investors braced for a fresh round of US tariffs that many fear could trigger renewed turbulence in the global economy.
The unease follows reports that US President Donald Trump is mulling a more selective strategy for the new tariffs, expected to come into force on in a little over a week.
The White House insists the tariffs are part of a broader effort to rebalance trade, but analysts warn the uncertainty is already unsettling investors and denting market sentiment.
Since returning to office in January, Trump has reignited tensions with key allies by reviving protectionist rhetoric and threatening a swathe of import duties, including on steel and cars– moves that have rattled financial markets from Tokyo to Frankfurt.
Reports have emerged suggesting the US may opt for a more calibrated strategy– hitting some countries harder than others and dialling back the overall severity of the measures. Trump himself hinted at possible adjustments on Friday, telling reporters that there would be “flexibility” in the final plans.
Despite the tentative reassurance, Asian equity markets remained subdued. Tokyo closed flat, while Shanghai, Singapore and Taipei managed modest gains. But Hong Kong, Sydney, Seoul and Wellington all edged lower as investors stayed cautious.
All eyes on April 2 tariffs
Attention is now firmly fixed on April 2, which Trump has dubbed “Liberation Day” in reference to the sweeping package of retaliatory trade measures he is set to unveil.
“Anticipation and pre-positioning ahead of Trump’s ‘Liberation Day’ on 2 April and the impending deluge of tariff-related announcements that will follow in the days/weeks after will be a growing factor that drives price action, sentiment and liquidity in markets this week,” said Chris Weston, head of research at Pepperstone. “Market participants are questioning whether it’s time to batten down the hatches in anticipation of a gathering storm.”
Impact Shorts
More ShortsIn Beijing, Premier Li Qiang said at the weekend that China was preparing for “shocks that exceed expectations” amid mounting instability. Li’s comments followed meetings with senior executives from Apple, Qualcomm, FedEx and Pfizer, underlining the high stakes for multinational firms navigating the evolving trade landscape.
Australia’s Treasurer, Jim Chalmers, described Trump’s approach as “seismic”, telling Bloomberg News the administration’s positioning was “not surprising, but significant in its potential impact”.
As trade tensions escalate, markets appear to be entering a phase of nervous waiting—with little sign of clarity ahead of Trump’s self-styled “Liberation Day”.