Markets Growing Immune to Trump's Tariffs, Asia Remains Attractive for Investors

Global financial markets are becoming desensitized to Trump’s tariff decisions, according to CGS International Securities Group CEO Carol Fong. Trump set a new August 1 deadline for reciprocal tariff rates and imposed a 50% tariff on copper imports. Treasury Secretary Scott Bessent stated the U.S. has received $100 billion in tariff income so far this year.

There is a trend of Chinese companies relocating resources to Southeast Asia due to trade uncertainties, says Fong. The trade war initiated by Trump has led to volatility in global markets and some investors shifting away from U.S. assets. Despite challenges, Asia continues to see more foreign direct investment inflows compared to the rest of the world.

Eastspring Investments CIO Vis Nayar highlighted India as a standout investment destination due to its domestic economy and characteristics. Nayar cautioned that valuations in India are expensive, requiring selective investment choices. Uday Sareen, ING chief executive for Asia Pacific, mentioned that Asia continues to attract more foreign direct investment inflows.

The Reuters Next Asia summit discussed the impact of Trump’s tariff decisions and the shifting landscape of global financial markets. Fong noted Chinese companies are diversifying their base in Southeast Asia. Despite challenges, Asia remains an attractive destination for investment, with India standing out for its domestic economy and characteristics.

Read more at Yahoo Finance: REUTERS NEXT-Markets becoming desensitised to Trump’s tariff shifts, CGS International CEO says