Global investors across Asia and Europe shrugged off new US tariffs, helping markets recover swiftly
The world is not fazed by US President Donald Trump’s latest tariffs, with global equities climbing and safe-haven assets showing muted moves as investors treat the measures as part of ongoing trade negotiations.
According to CNBC, the MSCI All Country World Index rose 1.8 percent since August 1. China’s CSI 300 gained more than 1 percent, and Japan’s Nikkei 225 climbed 2.5 percent.
This comes despite fresh tariffs of 10 to 15 percent on imports from the EU, Japan, and South Korea, and 20 percent on products from Taiwan, Vietnam, and Bangladesh.
International markets are now on pace to outperform US equities for the first time since 2022 — and in a rising market for the first time since 2009 — reported Bloomberg.
The MSCI World Index excluding the US is up 18 percent in 2025 versus the S&P 500’s 7.8 percent. Country performances include Mexico up 18 percent, Canada up 12 percent, Germany up 21 percent, Spain up 26 percent, Brazil up 14 percent, and the UK up 11 percent.
Craig Basinger, chief strategist at Purpose Investments, said the valuation gap between US and international markets is “historically wide,” with investors shifting away from US assets.
Europe’s Stoxx 600 has also posted recent gains, as per CNBC, supported by corporate earnings and showing little reaction to tariff threats.
India, facing a tariff increase from 25 percent to 50 percent on a wide range of goods, saw its Nifty 50 index barely move.
Steve Brice, global chief investment officer at Standard Chartered Bank’s wealth solutions unit, said there is “a bit of numbness” in markets due to past precedents of tariff rollbacks.
According to Bloomberg, gold markets briefly plunged into turmoil after a July 31 letter from US Customs and Border Protection to a Swiss refiner indicated bullion could face tariffs.
New York gold futures surged above US$3,530 an ounce, more than US$100 higher than London prices, before the administration suggested gold bars would not be subject to tariffs.
Robert Gottlieb, a former managing director at JPMorgan, said the government “did not take into consideration that this widget was actually gold.”
Swiss refineries warned that tariffs would make US shipments unviable, and Asian refineries halted US-bound sales.
Safe-haven assets have seen only limited movement since August 1.
As per CNBC, the US 10-year Treasury yield fell over two basis points, the US Dollar Index slipped under 2 percent to 98.11, and spot gold rose nearly 3 percent.
This contrasts sharply with April’s reaction, when the S&P 500 fell 12 percent and the MSCI World Index excluding the US dropped over 8 percent after an earlier tariff announcement.
Bloomberg reported that European and Japanese markets may now have more earnings growth potential in the medium term, with RBC Global Asset Management’s David Lambert suggesting a “gentle rerating” is possible.
A June BofA Securities survey found 54 percent of fund managers expect international stocks to outperform over the next five years, compared with 23 percent for US equities.
According to CNBC, Hugh Dive, chief investment officer at Atlas Funds, warned that tariffs could undermine long-term business investments due to policy uncertainty.
He cited Trump’s latest announcement of a 100 percent tariff on chip imports, exempting companies “building in the United States,” noting that building a plant costing hundreds of millions could be a risk if tariffs are later removed.
