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American Focus > Blog > Economy > The markets just don’t believe Trump on tariffs
Economy

The markets just don’t believe Trump on tariffs

Last updated: July 8, 2025 12:30 am
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The markets just don’t believe Trump on tariffs
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The deadline for countries to negotiate a trade deal with the US has been a moving target, with various dates being mentioned by different officials. The latest announcement by President Trump imposing 25% tariffs on Japan and South Korea has caused some ripples in the market, but overall, the response has been relatively muted.

Market analysts have pointed out that the new tariffs won’t have a significant impact on the overall effective tariff rate on US imports from these countries. While the US-UK trade agreement was seen as a positive step, it was more of a framework than a comprehensive deal. Similarly, the recent agreement with Vietnam, while more concrete, only represents a small portion of US trade.

The ongoing tariff game is still in its early stages, with many agreements being more symbolic than substantive. Investors seem to have adopted a wait-and-see approach, believing that moderate tariffs won’t have a significant impact on economic growth. However, there is a concern that Trump may escalate tariffs if the market continues to shrug off his threats.

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