Negotiators from around the world have tried to reach agreements with Washington since Trump in April unveiled his “Liberation Day” tariff bombshell, with a July 9 deadline recently pushed back to Aug 1.

Letters have been sent in recent days to more than 20 trading partners – including Japan and South Korea – setting out new tolls, with some higher and some lower than the initial levels.

Trump also said this week he would put a 50% tariff on copper imports, while considering a 200% charge for pharmaceuticals.

However, analysts said the threats are largely being seen as negotiating tools, and investors have increasingly taken them in their stride, with the S&P 500 and Nasdaq hitting all-time highs in New York.

David Chao, global market strategist for Asia Pacific at Invesco, painted a positive picture even in light of the threatened levies.

“Should the US ultimately impose higher tariffs on Asian countries, the region appears better positioned to withstand the resulting headwinds,” he wrote.

“A softer dollar should give Asian central banks greater flexibility to ease policy to support their domestic economies without heightened concerns over currency depreciation,” he added.

London jumped 1% to a record high at the open, with Frankfurt and Paris also advancing.

In Asia, Hong Kong, Shanghai, Sydney, Singapore, Seoul, Taipei and Jakarta all rose, though Tokyo edged down with Manila, Bangkok and Wellington.

The rallies followed a healthy lead from Wall Street, where the Nasdaq hit another peak thanks to a surge in Nvidia that pushed the firm to a US$4 trillion valuation at one point.

The upbeat mood helped push bitcoin above US$112,000 for the first time.

There was also little reaction to news that Trump had hit Brazil with a 50% tariff as he blasted the trial of the country’s ex-president Jair Bolsonaro.

In a letter addressed to Brazilian President Luiz Inacio Lula da Silva, he called the treatment of his right-wing ally an “international disgrace”.

Bolsonaro is on trial over accusations he plotted a coup after his 2022 election loss to Lula.

Lula said he will impose reciprocal levies on the US.

Brazil had not been among those threatened with these higher duties previously, with the US running a goods trade surplus instead with the South American giant.

Traders were given few guides on the Federal Reserve’s interest rate plans after minutes from its June policy meeting showed officials divided on the best way forward.

Boss Jerome Powell’s patient approach to lowering borrowing costs has drawn the ire of Trump, who said yesterday on social media that they were “AT LEAST 3 Points too high”.

While the board sees the president’s tariffs as inflationary, the minutes said there remained “considerable uncertainty” on the timing, size and duration of the effects.

Companies might choose not to raise consumer prices until they depleted their product stockpiles, for example, but supply chain disruptions caused by the levies could trigger larger price hikes.

“While a few participants noted that tariffs would lead to a one-time increase in prices and would not affect longer-term inflation expectations, most participants noted the risk that tariffs could have more persistent effects on inflation,” the report said.