What do Trump's revised tariff rates mean for global markets?
President Trump delays reciprocal tariffs until August while adjusting rates for 14 countries, triggering market volatility and currency declines.

Trump pushes back tariff timeline with revised rates
President Trump announced overnight a significant shift in his trade policy, postponing the implementation of reciprocal tariffs from 9 July to 1 August. The revised plan includes adjusted tariff rates for 14 countries, with the White House indicating more announcements will follow.
The latest development has created considerable uncertainty across global markets. The timing change suggests the administration is still fine-tuning its approach to international trade relationships.
Strategic tariff approach targets countries and sectors
The latest tariff announcement covers 14 countries with rates ranging from 25% to 40%. Japan's rate increased from 24% to 25%, while Cambodia saw a significant reduction from 49% to 36%.
Notable exclusions from this round include major trading partners such as the European Union, Taiwan, and India, suggesting these economies maybe still under trade negotiations. China, Mexico, and Canada are expected to have separate discussions due to existing trade agreements.
Assigned reciprocal tariffs chart

Beyond country-specific measures, the Trump administration is expected to announce sector-specific levies in due course. So far, automobiles, steel and aluminium already face specific tariffs.
The probe on other sectors have begun with current investigations covering industries such as semiconductors, pharmaceutical goods, copper, and timber. When combined with country-specific tariffs, the impact on prices of goods and services can be far more severe than current levels suggest.
Year-to-May trade deficit by country

Market reaction remains contained despite uncertainty
Equity markets
United States (US) equity markets responded negatively to the tariff announcement, with the Dow Jones falling 422 points or 0.9%. The US Tech 100 (Nasdaq 100) declined by 0.8%, reflecting investor concerns about trade disruptions.
Export-focused companies bore the brunt of the selling pressure. Toyota Motor's ADR declined 4% in US trading. The volatility index (VIX) spiked to 18.5 before settling at 17.8, indicating heightened market anxiety.
However, compared to the market's reaction in April following the Liberation Day announcements, which triggered a sell-off of over 6% and 8% in a day for the US 500 (S&P 500) and Japan 225 (Nikkei 225) indices respectively, the moves we have seen are relatively small. This suggests markets may be becoming more accustomed to flip flops in Trump's policies or welcomed the delayed implementation as this provided three more weeks for countries to negotiate.
Commodity markets
Gold prices remained relatively stable despite the uncertainty.
Currency markets
Currency markets showed more dramatic moves, with affected countries' currencies weakening sharply against the US dollar. The South African Rand plunged 1.95%, while the Japanese Yen and Korean Won dropped 1.2% and 1.0% respectively.
US Tech 100 technical analysis
The US Tech 100 index sits at a crucial technical juncture following yesterday's decline. The pullback has brought the index back to the upper boundary of its ascending channel from mid-May.
Support at 22,500 represents a critical level for the index. Failure to hold above this point could trigger a deeper correction towards 21,500 support.
A decisive rebound from current levels could see the index test the psychological resistance at 23,000. This level would represent a continuation of the recent upward trend.
US Tech daily price chart

Japan 225 technical analysis
The Japan 225 index shows a robust uptrend, trading comfortably above its 200-day simple moving average. The ascending channel's lower boundary from mid-May provides solid support around 38,930, though upside potential remains capped by the recent peak at 40,858.
This technical setup suggests the index maintains bullish momentum despite short-term headwinds from tariff concerns.
Japan 225 daily price chart

USD/JPY technical analysis
USD/JPY faces a critical decision point at the 146 resistance level. This level has capped advances on three occasions over the past three months.
A break above 146 would likely propel the pair towards 148 before encountering selling pressure. This move would signal renewed US dollar strength against the Japanese yen. Conversely, a decline below 142.5 could trigger a test of April's low at 139.9. Such a move would indicate tariff concerns are weighing on US dollar sentiment.
USD/JPY daily price chart

- Source: TradingView. The figures stated are as of 8 July 2025. Past performance is not a reliable indicator of future performance. This report does not contain and is not to be taken as containing any financial product advice or financial product recommendation.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get spreads from just 0.1% on major global shares
- Trade CFDs straight into order books with direct market access
Live prices on most popular markets
- Forex
- Shares
- Indices
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.