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08/07/2025 08:01

China: Stocks Rise as Trump Unveils New Tariff Rates.

The Shanghai Composite rose 0.2% to around 3,480 while the Shenzhen Component gained 0.8% to 10,520 on Tuesday, recouping losses from the previous session as US President Donald Trump announced new tariff rates on 14 countries, removing some uncertainty in the market. Trump also signed an executive order extending the reciprocal tariff deadline to Aug. 1 from Jul. 9, allowing more time for negotiations. While China was not on the latest tariff list, Trump also warned of an additional 10% levy on countries aligning with the “Anti-American policies of BRICS,” as the bloc convened for a summit in Brazil. Domestically, investors looked ahead to key inflation and trade data due later this week, which could offer insight into the broader economic impact of evolving US-China trade relations. Technology stocks led the gains, with notable advances from Foxconn Industrial (+8.9%), Victory Giant (+7.6%), Eoptolink Technology (+4.4%), Zhongji Innolight (+3.2%), and Tansun Technology (+15%).