US markets opened on a positive note on Wednesday, with investors await President Donald Trump’s renewed tariff threats and trade negotiations. In the early hours of trading, the Dow Jones Industrial Average rose by 177.94 points, or 0.40%, to 44,418.70. The S&P 500 gained 25.54 points, or 0.41%, reaching 6,251.06, while the Nasdaq Composite advanced 118.04 points, or 0.58%, to 20,536.50. On Monday, Trump released tariff letters to 14 countries. In the letters, Trump voiced concerns over the trade imbalance between the US and the recipient countries. He offered an incentive, stating that companies relocating production to the US would be exempt from tariffs.
However, he also issued a warning, any retaliatory tariffs could prompt the US to impose even higher duties in response. Trump also added, “These tariffs may be adjusted, up or down, based on our relationship with your country. You will never be disappointed with the United States of America.”
The new tariff structure announced by the US targets several countries with varying rates. Bangladesh and the Republic of Serbia face a 35% tariff, while Bosnia and Herzegovina and South Africa are subject to 30%. Cambodia and Thailand are hit with the highest rate at 36%, followed closely by the Lao People’s Democratic Republic and Myanmar at 40%. Indonesia faces a 32% tariff, whereas Japan, Kazakhstan, Malaysia, the Republic of Tunisia, and South Korea are each assigned a 25% tariff.
Trump also threatened the BRICS bloc with additional tariffs after the group, during its 17th summit in Brazil, indirectly criticised the US’s trade war and its recent military strike on Iran. “Any country aligning themselves with the anti-American policies of BRICS will be charged an ADDITIONAL 10% tariff,” Trump posted on Truth Social. BRICS originally comprised Brazil, Russia, India, China, and South Africa, which joined a year later. The bloc has since expanded to include countries like Indonesia, Egypt, Iran, Ethiopia, and the United Arab Emirates.