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Trump's tariffs: Why did US President Donald Trump extend deadline for Japan, South Korea?

Trump's tariffs: Why did US President Donald Trump extend deadline for Japan, South Korea?

Mint09-07-2025
Trump tariffs: U.S. President Donald Trump has extended the deadline for tariffs on key trading partners, including Japan, South Korea, and Malaysia, until August 1, while imposing fresh tariffs in the range of 25% to 49%.
The announcement has already led to volatility in stock markets across the globe, and its ripple effects are expected to affect investors in the weeks ahead.
Japan's Nikkei added 0.3% and South Korea's KOSPI climbed 0.5% today. At the same time, Australia's stock index declined 0.5%, and Hong Kong's Hang Seng lost 0.7%. Back home, the Indian stock market traded in a narrow range, gyrating between gains and losses.
With markets preparing for ongoing volatility, it's important for investors to grasp how this extension might influence their portfolios.
'The delay of the tariff deadline is more than just a temporary relief for trading partners, but it's also a signal that the trade war is far from over. Investors need to assess how global supply chains could be disrupted further and consider hedging strategies to protect their portfolios from potential market shocks,' said Fei Chen, Investment Strategist and Founder and CEO of Intellectia AI.
Anuj Gupta, Director, Ya Wealth Research & Advisory, believes that Trump's tariff postponement indicates his intention to assess the growth prospects of the U.S. economy more closely.
'It also appears he is aiming to reduce market uncertainty before moving forward,' said Gupta.
Gupta further said that following the recent conflict between Israel and Iran, Trump has slightly softened his previously aggressive stance, opting to delay the implementation of tariffs as part of a more cautious and measured approach.
According to Sugandha Sachdev, VP, Religare Broking, the extension underscores Trump's preferred tactic: threaten maximal action, then retreat tactically if counterparties engage in 'good-faith' talks.
Extending the deadline lets Washington convert this goodwill into concrete concessions rather than risk squandering it with a sudden tariff shock.
"The objective remains unchanged, narrowing the trade deficit and reshoring production, but the White House is showing investors it can calibrate pressure without destabilising the recovery. The postponement is less a climb-down than a calculated move to lock in diplomatic wins, safeguard the domestic economy and coax trading partners toward concessions that make across-the-board tariffs unnecessary," Sachdev said.
Sachdev further explained that markets should therefore view the delay as a pragmatic step that keeps the growth narrative intact while preserving Trump's leverage for the further negotiating rounds.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
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