Global markets remained resilient on Wednesday morning, with major European indices climbing despite escalating rhetoric from U.S. President Donald Trump over trade with Japan.
Speaking aboard Air Force One, Trump said Japan should “pay 30%, 35% or whatever the number is that we determine,” citing the U.S.’s substantial trade deficit with the country. His comments come just months after Tokyo was hit with a 24% tariff on what Trump dubbed "Liberation Day" on 2 April — a figure that was temporarily reduced to 10% for 90 days to allow space for negotiations.
As the July 9th deadline for a revised deal approaches, Trump showed no signs of softening his stance. “I'm not thinking about the pause,” he said, hinting that multiple countries could soon receive formal warnings. “We’ve dealt with Japan. I’m not sure we’re going to make a deal. I doubt it,” he added.
Despite the tough talk, market sentiment appeared unshaken in early European trade. London's FTSE 100 (^FTSE) rose 0.1%, Germany’s DAX (^GDAXI) climbed 0.2%, and France’s CAC (^FCHI) moved 0.2% into the green. The broader STOXX 600 index (^STOXX), which tracks leading European shares, was also up 0.1%.
Across the Atlantic, Wall Street looked set for a strong open. Futures for the S&P 500 (ES=F), Dow Jones (YM=F), and Nasdaq (NQ=F) were all trading in positive territory, suggesting investor optimism remained intact despite geopolitical uncertainty.
Meanwhile, currency markets told a slightly different story. The pound fell 0.2% against the U.S. dollar (GBPUSD=X), slipping to 1.3712 as traders digested Trump’s latest salvo and awaited further clarity on the direction of U.S. trade policy.
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