Stock markets across Asia fell on Monday after U.S. President Donald Trump sent tariff letters to 14 countries, slapping a 10% surcharge on nations “aligning with BRICS.” However, Pakistan outperformed, amid optimism over a possible trade deal with Washington.
In Japan, the Nikkei 225 slipped 0.56%, finishing at 39,587.68, while the Topix index also declined by 0.57% to close at 2,811.72. Hong Kong’s Hang Seng index dropped 0.61%, and mainland China’s CSI 300 fell 0.43% to close at 3,965.17. The Indian rupee fell to a low of 86.0275 against the U.S. dollar before recovering slightly to close at 85.85, down 0.5% on the day—its weakest closing since mid-June, when markets were rattled by military tensions between Israel and Iran
The KSE-100 index surged 1,421 points, or 1.08%, closing at a record high of 133,370.15 — the best-performing market in Asia on Monday.
Analysts believe the market gain is due to reports that Pakistan and the United States have reached a trade and tariff agreement ahead of the July 9 deadline. A formal announcement is expected after the U.S. wraps up talks with other countries.
Last month, President Donald Trump hosted Pakistani Field Marshal Asim Munir to the White House ahead of strikes on Iran’s nuclear facilities. The meeting between Pakistan’s army chief and the U.S. president took place on June 19, during which the U.S. reportedly asked Pakistan for airbases to facilitate attacks on Iran.
Pakistan military’s media wing said both sides reaffirmed counter-terrorism cooperation and discussed expanding ties in trade, minerals, energy, AI, cryptocurrency, and emerging technologies. President Trump showed interest in a long-term, mutually beneficial trade partnership based on shared strategic goals. Pakistan’s exports to the United States, according to Office of United States Trade Representative, are around $5.1 billion, while imports from the U.S. are approximately $2.1 billion. The total volume of goods trade between the two countries stands at about $7.3 billion. Pakistan exports nearly $3 billion more to the United States than it imports from it.
Tariff Letters Sent to 14 Countries
On Friday, Trump’s administration sent tariff letters to 14 countries.
| Country | Tariff | Country | Tariff 2 | |
|---|---|---|---|---|
| Bangladesh | 35% | Bosnia & Herzegovina | 30% | |
| Cambodia | 36% | Japan | 25% | |
| Indonesia | 32% | Laos | 40% | |
| Kazakhstan | 25% | Malaysia | 25% | |
| Myanmar | 40% | Serbia | 35% | |
| South Korea | 25% | South Africa | 30% | |
| Tunisia | 25% | Thailand | 36% |
The US also imposed an additional 10% surcharge on any nation “aligning with the anti-American policies of BRICS.” This was reaction to BRICS joint statement. In its July 6 joint statement during the 17th High-Level Leaders’ Meeting, BRICS challenged U.S. dominance in major global institutions, opposed protectionist trade practices, demanded reforms in the IMF and World Bank, and called for collective governance on artificial intelligence and climate change — positions that directly contradict the core principles of the 'America First' agenda
BRICS stands for Brazil, Russia, India, China, and South Africa. It was founded in 2001 as a forum for emerging economies and less developed countries to cooperate on trade, security, and diplomacy.
Brazil, Russia, India, and China were original members, while South Africa, Saudi Arabia, Egypt, Iran, Ethiopia, the United Arab Emirates, and Indonesia joined later, bringing the total to 11 countries.
By Atif Khan
Atif Khan is an Islamabad based journalist.
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