Global financial markets are showing a remarkable level of “immunity” to the latest tariff measures announced by U.S. President Donald Trump. Instead of the panic-driven sell-offs seen in April, investors are now reacting with calm, with several major indexes even posting solid gains.
In early August, the U.S. imposed tariffs of 10–15% on imports from the European Union, Japan, and South Korea, along with a 20% tariff on products from Taiwan, Vietnam, and Bangladesh. India – targeted for continuing to import Russian oil – saw tariffs on its exports jump from 25% to 50%.
Despite these measures, the MSCI All Country World Index, which tracks more than 2,500 stocks from developed and emerging markets, has risen 1.8% since the start of the month. In Asia, China’s CSI 300 gained over 1%, while Japan’s Nikkei 225 climbed 2.5%. Even India’s Nifty 50 barely moved. In Europe, the Stoxx 600 continued to edge higher, supported by upbeat corporate earnings, signaling investor optimism despite tariff pressures.
According to Steve Brice, Global Chief Investment Officer at Standard Chartered Bank, investors are now less easily swayed by tariff headlines, partly because they expect these measures could be rolled back or revised during trade negotiations. “This is no longer the shock it once was. Markets have adapted and are waiting for the possibility of policy reversals,” he noted.
Safe-haven assets have also reacted modestly. The yield on the U.S. 10-year Treasury fell by just over 2 basis points, the U.S. Dollar Index slipped nearly 2% to around 98, and spot gold rose almost 3%. This stands in stark contrast to the global sell-off in April, when the S&P 500 dropped 12% in just a few days and the MSCI World (excluding the U.S.) fell more than 8%.
This muted reaction reflects what analysts call “Trump Always Chickens Out” (TACO) – the tendency for the former president to issue aggressive tariff threats to shake markets, only to later soften or delay them. In April, for example, Trump unexpectedly reduced tariffs to 10% and extended implementation by 90 days, sparking one of Wall Street’s strongest rallies in years.
Hugh Dive, Chief Investment Officer at Atlas Funds, noted that global portfolios are now more diversified and less concentrated in U.S. assets, making them less vulnerable to policy shocks. However, he warned of longer-term risks, as tariffs could discourage businesses from investing, particularly in costly projects such as building manufacturing facilities.
Indeed, on August 6, Trump announced a 100% tariff on imported semiconductors but exempted companies currently constructing plants in the U.S. Dive cautioned: “If tariffs are lifted a few years later, such massive investments could turn into a financial burden.”
For now, global equities appear increasingly desensitized to the White House’s hardline trade tactics. Still, analysts advise investors to remain vigilant, as any sudden policy shift could have far-reaching and unpredictable consequences.
Tiếng Việt
English
