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As traders consider tariffs, the dollar is firmer and Asian stocks are mixed.

The dollar was trading at a two-and-a-half-week high against major peers on Tuesday, while copper reached a new all-time high overnight after U.S. president Donald Trump expanded his global trade conflict by threatening to impose a 50% tariff.

Trump said that levies would be imposed on pharmaceuticals and semiconductors in the near future, which weighed on Wall Street Tuesday. Futures indicate further weakness on Wednesday.

Stock markets in Asia-Pacific were mixed as investors digested Trump’s latest shifting trade salvos. Japan and South Korea, two of the largest U.S. trading partner countries in Asia-Pacific, face a deadline on August 1, to either reach a deal with Trump or face new tariffs. Trump has given mixed signals about how flexible he is regarding this date.

Trump's Monday comment that he was "firm but not 100%" confirmed the belief among some markets that deadlines were a negotiation tactic the U.S. President would eventually back away from. Trump's stance appeared to be hardened on Tuesday when he said, "No extensions will ever be granted."

Nikkei, the Japanese stock index, fell 0.2% after a small gain. Australia's index of stocks fell by 0.4% and Hong Kong's Hang Seng dropped 0.9%.

The KOSPI in South Korea rose 0.5%, while mainland Chinese blue-chips gained 0.2%.

U.S. S&P futures eased by 0.1% following a loss of 0.1% for the cash index Tuesday, which extended the 0.8% decline that began the week.

The delay of the imposition of tariffs against some of the U.S. major trading partners until August 1st has both pushed the can down the road, and reinforced the notion that higher tariff rates were a negotiation ploy," Kyle Rodda wrote in a Capital.com note.

"As a consequence, the markets are left hanging and waiting for a more powerful catalyst to drive the move."

Trump said that the trade talks with China and the European Union have been good, but he also added that he was only a few days away from sending the EU a tariff letter.

Since Trump's announcement of reciprocal tariffs on April 2, "Liberation Day", the markets have been roiled. Washington and China reached an agreement in June on a framework for tariff rates.

Metals, Currency

U.S. Copper Futures have risen by over 10%, reaching a new record high, after Trump threatened to introduce new duties on this metal, which is essential for electric vehicles, military equipment, the power grid, and many consumer products. These duties would be added to those already in place on steel, aluminum and automobile imports.

Copper futures in London, Shanghai and other markets fell on Wednesday as traders might not have enough time to ship to the United States after Trump's sudden tariff announcement.

Trump has also threatened to impose 200% tariffs for drug imports. He said that the delay could be up to a year.

The U.S. Dollar continued to gain strength on Wednesday and reached its highest level since June 20, at 147.02 Japanese Yuen.

The dollar index (which measures the currency's value against the yen, and five other major competitors) edged up at 97.573 after reaching its highest level since June 25, Tuesday, when it was 97.837.

The dollar was unchanged at $1.1720 and the euro at $1.1720. Sterling was also flat at $1.3585.

After a more than 1% decline on Tuesday, gold found a bottom at $3,301 an ounce.

The oil prices have retreated from their two-week highs of Tuesday. Brent crude futures fell 20 cents, to $69.95 per barrel. U.S. West Texas Intermediate Crude dropped 21 cents, to $68.12 per barrel.

(source: Reuters)