stake markets cautious as Trump signals recent tariffs

Getty President Donald Trump signs executive orders in the Oval Office on 20 January, 2025 in Washington, DC.

stake markets in the Asia-Pacific region gave up early gains after President Donald Trump said he is thinking of imposing recent tariffs on Mexico and Canada.

Shares opened higher after Trump pledged in his inaugural address to bring in a recent “golden age” for America.

He has promised an ambitious agenda – including trade reforms, lower taxes and cuts to government regulations – which has the potential to boost corporation profits.

But some economists have warned that the measures may also raise expense boost, which in turn could force the Federal safety net to boost gain rates.

“We’re thinking in terms of 25 percent on Mexico and Canada, because they’re allowing vast numbers of people — Canada’s a very impoverished abuser also — vast numbers of people to arrive in, and fentanyl to arrive in,” Trump said in the Oval Office.

During the election campaign, he also pledged tariffs of 10% on all imports into the US and said he would hit China with a 60% import responsibility.

Trump has said tariffs will make Americans richer, although critics declare the costs are likely to be passed on to consumers.

The President has also said he would make an “External turnover Service” to collect all tariffs, duties and revenues from foreign sources.

On Tuesday morning, Japan’s Nikkei 225 index was 0.1% higher, South Korea’s Kospi was down 0.1% and Australia’s ASX 200 rose by around 0.6%.

Meanwhile, the dollar regained some ground against some other major currencies, including the pound and the euro.

“trade sentiment was dented during the signing of executive orders by President Trump in the Oval Office,” said Tim Waterer, chief trade analyst at budgetary services firm KCM Trade.

“Investors heard more explicit details regarding the Trump tariff agenda, which sullied the trade mood somewhat.”

US markets were closed on Monday for the Martin Luther King Jr Day holiday.