US‑Canada Tariff Reversal Sparks Asian Market Surge

The fresh US‑Canada tariff showdown ignited a sharp rally in Asian equities, reshaping the global risk landscape.

Tariff War Rekindles

Donald Trump announced a 50% tariff on $20 billion of Canadian imports, targeting wine, cement and apparel. Canadian Prime Minister Mark Carney responded with a pledge to intensify negotiations.

Asian Market Momentum

With Brent crude slipping below $90 / bbl, Tokyo and Seoul exchanges jumped %1.2 and %1.5 respectively, while US futures turned positive.

■Tokyo: +%1.2

■Seoul: +%1.5

■US Futures: +%0.4

UK’s Fiscal Reset

New Prime Minister Andy Burnham appointed former Defence Minister John Healey as Chancellor and announced that electricity tax cuts will be funded by scrapping a digital ID program. The move could ease UK inflation and relieve pressure on the Bank of England to tighten policy.

Global Energy Price Dip

Despite the Houthi threat to block Saudi shipping, Brent’s slide under $90 / bbl provided market relief.

Markets are digesting the short‑term tariff shock while Asian liquidity inflows and energy price volatility open a window for EM investors. Japan and South Korea equities benefit from renewed risk appetite. However, the US‑Canada tariff clash may reroute trade flows and inject uncertainty into global supply chains, making regional diversification and protective option strategies essential for portfolio resilience.