The JSE was firmer on Tuesday morning, with global markets mixed as investors digested US president-elect Donald Trump’s plans to increase tariffs.
Trump announced on his social media platform, Truth Social, that he intended to raise tariffs by an additional 10% on all Chinese goods entering the US.
The announcement followed Trump’s previous statement that he would impose tariffs of 25% on all products from Mexico and Canada through an executive order on January 20. That decision would effectively end the regional free-trade agreement.
Trump cited concerns about illegal immigration and the illicit drug trade as justification for the tariffs.
“Trump’s proposed 25% tariff on all goods from Mexico and Canada, and a 10% tariff on China aims to reshape global trade. Targeted tariffs on China are expected to focus on products where US manufacturers compete directly, exacerbating tensions in an already fragile trade environment,” TreasuryOne currency strategist Andre Cilliers said.
“Analysts remain sceptical about the effectiveness of such measures, given historical data and the lag in realising their economic impacts,” said Cilliers.
At 10.40am, the JSE all share had gained 0.32% to 85,147.97 points, with major indices mixed, while the top 40 added 0.28%.
At the same time in Europe, the FTSE 100 had lost 0.47%, France’s CAC 40 0.82% and Germany’s DAX 0.66%.
Earlier in Asia, the Shanghai Composite lost 0.12% and Japan’s Nikkei 0.87%, while Hong Kong’s Hang Seng was little changed.
Cilliers said China’s role as SA’s largest trading partner put SA at risk of indirect consequences from Trump’s tariffs plans.
“However, the rand showed resilience, reflecting improved sentiment around SA’s reforms, green shoots in leading indicators, and positive bond market inflows,” he said.
At 10.45am, the rand had weakened 0.54% to R18.1407/$, 0.34% to R19.0006/€ and 0.49% to R22.7591/£. The euro was 0.11% weaker at $1.0482.
In the commodities markets, gold lost 0.1% to $2,622.05/oz and platinum 0.64% to $932.16/oz. Brent crude was 0.48% firmer at $72.86 a barrel.
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