US Tariffs Drive Global Markets Lower, ASX, Dow Fall

US President Donald Trump has finalized revised reciprocal tariffs set to take effect on August 7, reducing tariffs for several key manufacturing nations including Japan, Taiwan, Vietnam, South Korea, Indonesia, and Bangladesh. Nations not included in the revised list, such as Australia, will remain subject to the baseline 10% tariff, while China’s tariff stands at 34%, down from 125%. The announcement has contributed to declines in global markets, with Australia's ASX 200 falling due to tariff uncertainties and weaker commodity prices, despite strong earnings reports from major US tech companies like Microsoft and Meta. US markets also retreated, with the S&P 500 and Dow Jones posting losses amid tariff tensions and mixed economic data, even as tech leaders delivered better-than-expected quarterly results. President Trump extended a 25% tariff on Mexican imports and threatened new trade measures against Canada, signaling continued trade friction despite ongoing negotiations with China. Investor sentiment remains cautious as markets await upcoming US economic data and assess the impact of trade policies on global manufacturing and markets.