Japan, South Korea markets are muted in early trade as Trump hits trading partners with higher tariffs

Markets in Asia were muted as US President Donald Trump announced higher tariff rates on 14 countries.

Trump hit trading partners such as Malaysia (25 per cent), Indonesia (32 per cent), Cambodia and Thailand (36 per cent), as well as Laos (40%). Japan and South Korea got hit with 25% tariffs.

14 countries have been sent these letters so far, according to Reuters. Trump said these higher tariffs will take effect on Aug 1, after a three-month tariff pause that was to end on Wednesday (Jul 9).

US markets have already slumped in response earlier, with the Dow Jones Industrial Average tumbling more than 400 points, the S&P 500 falling about 0.8 per cent and the Nasdaq declining nearly 1 per cent.

Over in Asia, Japan’s Nikkei 225 edged up 0.17 per cent, while South Korea’s Kospi rose 0.45 per cent. Australia’s ASX 200 was down 0.42 per cent.