Tariff Tensions and Market Maneuvers: Navigating Trump's Economic Saber-Rattling

Asian stocks fluctuated after U.S. and European markets hit record highs despite President Trump's tariff threats. Investors see these threats as bargaining tools as tariffs on pharmaceuticals, semiconductor chips, and autos loom. Chinese tech stocks rose, while New Zealand and Australian dollars slid following rate cuts.

Asian stocks exhibited uncertainty on Wednesday following record highs observed in the S&P 500 and European shares, despite U.S. President Donald Trump's tariff threats. Trump has imposed 10% tariffs on Chinese imports and announced future tariffs on goods from Mexico and Canada, though market reactions remain subdued.

Trump indicated sectoral tariffs on pharmaceuticals and semiconductors would start at 25% or higher. U.S. markets largely view these threats as negotiation tools. The dollar strengthened due to geopolitical tensions, particularly the Russia-Ukraine talks, which fueled safe-haven demands.

Meanwhile, Chinese tech stocks surged amid optimistic market sentiment driven by AI startup DeepSeek. In contrast, New Zealand and Australian dollars declined after their central banks announced rate cuts. European markets rose, with investors eyeing potential economic stimuli post-Germany's elections.

(With inputs from agencies.)