Global Markets Ignore Trump's Tariffs on 14 Countries

Despite President Donald Trump's announcement of steep new tariffs on goods from 14 countries, including Japan and South Korea, global stock markets have largely shrugged off the impact, with major indices in Asia-Pacific and Europe showing muted or positive responses. The MSCI All Country World Index reached an all-time high, driven primarily by strong performances in European markets such as Greece, Poland, and the Czech Republic, while U.S. equities lagged with more modest gains. Market experts suggest that investors are skeptical of Trump's tariff threats, viewing them as negotiation tactics rather than definitive policy shifts, although some caution that Trump's commitment to high tariffs remains firm. The tariffs range between 25% to 40% and will take effect on August 1, but Trump's indication that the deadline is "firm, but not 100% firm" may contribute to the subdued market reaction. Despite concerns from multinational companies about the negative effects tariffs could have on earnings and competitiveness, investors appear confident that the worst of the tariff trade tensions may be behind them, favoring economic recoveries and fiscal improvements in certain regions. Analysts warn, however, that Trump's tariff agenda may continue to pose risks, and the market's current optimism might underestimate future trade policy impacts.