Dubai Telegraph - Stocks drop as Trump's new tariff sweep offsets earnings

With hours to go before the US president's deadline for governments to make toll-averting deals, he unveiled a list of sweeping levies he had decided to impose upon those still in talks.

However, he did provide a minor reprieve by saying the measures will take effect next week.

Governments around the world have been scrambling to cut agreements with the White House since Trump unveiled his bombshell "Liberation Day" tariffs on April 2, which included 10 percent across the board and then targeted "reciprocal" ones.

He then delayed implementation of the reciprocals until July 9, and then August 1, and next week.

Some countries reached deals, including Japan, the European Union, Britain and recently South Korea, but most are yet to do so. China remains in talks with Washington to extend a fragile truce in place since May.

For those in the crosshairs of the latest outburst, the measures range from 10 percent to 41 percent.

Canada was singled out for a 35 percent hit, with Trump hitting out at its failure to deal with cross-border drugs issues and earlier at Ottawa's plan to recognise a Palestinian state.

In Ottawa, Prime Minister Mark Carney said he was "disappointed" by Trump's decision.

Taiwan faces 20 percent "temporary" duties, with its President Lai Ching-te saying there was a possibility of reductions should an agreement be reached, while Cambodia welcomed a 19 percent rate as it was well down from the initial 36 percent initially threatened.

The Swiss government said Friday it would negotiate to avoid the 39 percent toll it was hit with, which will potentially hammer its key pharmaceutical industry. The new rate is up from the 31 percent previously threatened.

Equities went into retreat at the end of the week as traders contemplated the impact on the global economy.

Tokyo, Hong Kong, Sydney, Singapore, Shanghai, Mumbai, Bangkok, Wellington and Taipei were all down.

Seoul dived nearly four percent as the South Korean government considers higher taxes on corporations and stock investors to shore up revenue.

London, Paris and Frankfurt also fell.

There were gains in Manila and Jakarta.

"Overall, the tariffs are relatively expected for Asia," said Lorraine Tan, Morningstar director of equity research in Asia.

"The fact that the larger export countries such as Korea and Japan are at 15 percent and the Southeast Asian countries are at 19 percent is a fairly reasonable outcome especially after the initial April 2 shock. Hence we think the markets should shrug this news off."

The losses tracked a sell-off on Washington, where traders' hopes for a September interest rate cut were dented by data showing the Federal Reserve preferred gauge of inflation rose more than expected last month and topped forecasts.

The figures came a day after the central bank appeared guarded about the outlook, even as Trump puts pressure on boss Jerome Powell to reduce borrowing costs.

"US interest rate traders have lowered the implied probability for a cut from the Fed in September... and as such, the central position is progressively leaning to the Fed keeping rates on hold in the September (policy) meeting," Chris Weston of Pepperstone said.

The tariff uncertainty overshadowed earnings from major tech titans this week that saw Apple on Thursday post double-digit quarterly revenue growth that beat expectations.

And Amazon said quarterly profits jumped 35 percent as key major investments in AI technology pay off, though its outlook for the next three months disappointed.

Google, Microsoft and Meta have also posted bumper results for the period.

"Massive results seen by Microsoft and Meta further validate the use cases and unprecedented spending trajectory for the AI Revolution on both the enterprise and consumer fronts," Wedbush tech analyst Dan Ives said in a note to investors.

On currency markets the Taiwan dollar spiked above 30 to the greenback for the first time since June, while the yen remained under pressure as the Bank of Japan holds off hiking rates and Fed expectations sink.

- Key figures at around 0810 GMT -

Tokyo - Nikkei 225: DOWN 0.7 percent at 40,799.60 (close)

Hong Kong - Hang Seng Index: DOWN 1.1 percent at 24,507.81 (close)

Shanghai - Composite: DOWN 0.4 percent at 3,559.95 (close)

London - FTSE 100: DOWN 0.7 percent at 9,066.44

Euro/dollar: DOWN at $1.1415 from $1.1421 on Thursday

Pound/dollar: DOWN at $1.3193 from $1.3208

Dollar/yen: DOWN at 150.55 yen from 150.68 yen

Euro/pound: UP at 86.54 pence from 86.43 pence

West Texas Intermediate: FLAT at $69.26 per barrel

Brent North Sea Crude: FLAT at $71.72

New York - Dow: DOWN 0.7 percent at 44,130.98 (close)

R.El-Zarouni--DT