U.S. President Donald Trump has announced that the domestic stock market, which had been shaken by the prospect of additional tariffs, is rebounding after one day. This seems to be due to expectations that Trump will use tariffs as a bargaining chip.
The KOSPI index stood at 2531.3 at 9:02 a.m. on the 11th, up 10.03 points (0.4%) from the previous day. At the same time, the KOSDAQ index recorded 750.23, up 0.56 points (0.07%). After 'touching' the 750 mark during the trading session the previous day for the first time in four months, it is now attempting to solidify that level.
Among the top market capitalization stocks in the KOSPI market, SK hynix, Samsung Biologics, Hyundai Motor Company, and Celltrion are on the rise. Samsung Electronics and LG Energy Solution started lower.
In the KOSDAQ market, leading stocks such as Alteogen, HLB, Rainbow Robotics, LigaChem Biosciences, and Sam Chun Dang Pharm are trading at higher prices than the previous day. Ecopro and ECOPRO BM are weak.
Investor concerns over tariffs were not significant in the U.S. stock market overnight. The Dow Jones Industrial Average rose 0.38% from the previous day. The Standard & Poor's 500 index, which is composed of large-cap stocks, and the technology-heavy Nasdaq composite both rose by 0.67% and 0.98%, respectively.
Trump signed a proclamation on the 10th (local time) imposing a 25% tariff on steel and aluminum products imported into the U.S. Following the application of an additional 10% tariff on China starting from the 4th, the introduction of universal tariffs on certain items led to assessments that a 'tariff war' is intensifying. Trump also noted, 'Tariffs on automobiles, semiconductors, and pharmaceuticals are under review.'
Despite such moves, analysts suggested that the relatively stable reaction of global stock markets is attributed to the short four-year term of President Trump. They imply that rather than drastically changing supply chains by relocating factories to the U.S. due to tariffs, corporations are more likely to pass the costs onto product prices.
Kim Il-hyuk from KB Securities' Research Institute said, 'If tariffs are passed on to prices, consumers will be affected, or corporations may reduce hiring,' adding, 'It won't be easy for President Trump, who has to face midterm elections at the end of 2026.' He also noted, 'There is a high possibility that exceptions will be quietly recognized, thereby reducing the tariff impact, just as during Trump's first administration.'