[Good Morning Stock Market] "Concerns Over Trump Tariff Bomb... Korean Stocks Expected to Face Downward Pressure"

Concerns over tariffs imposed by U.S. President Donald Trump are intensifying, and on the 10th, the Korean stock market is expected to experience downward pressure on stock prices similar to the sharp decline seen on the 3rd due to related risks.

On this day, President Trump plans to announce a 25% tariff on all steel and aluminum products imported into the United States. According to AP News and others, President Trump revealed this plan to reporters aboard Air Force One while traveling to New Orleans for the Super Bowl, the U.S. professional football championship. He stated, "Any steel entering the United States will be subject to a 25% tariff," adding, "The same applies to aluminum."

Additionally, on the 11th or 12th, he plans to announce 'reciprocal tariffs,' imposing equal tariff rates on trade partners. President Trump has pledged to impose reciprocal tariffs to ensure fair trade with countries that apply unfavorable trade conditions such as tariffs to the United States.

On the 7th (local time), the three major indices of the New York stock market closed down by around 1%. This was due to an unusual surge in U.S. consumers' expected inflation and President Trump's announcement that he would impose reciprocal tariffs on multiple countries this week, which worsened investor sentiment. On the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 44,303.40, down 444.23 points (0.99%) from the previous session. The S&P 500 index fell 57.58 points (0.95%) to 6,025.99, and the Nasdaq Composite index plunged 268.59 points (1.36%) to close at 19,523.40.

On the same day, Han Ji-young, a researcher at Kiwoom Securities, said, "The Korean stock market will be influenced by whether President Trump announces reciprocal tariffs, key U.S. economic indicators such as the January Consumer Price Index (CPI) and retail sales, Federal Reserve Chairman Jerome Powell's testimony before the House and Senate, and the earnings of major domestic companies such as Kakao and Hanwha Aerospace." She added, "There is a possibility that downward pressure on stock prices similar to that on the 3rd may occur during the process of announcing reciprocal tariffs."

She continued, "However, considering that the current Trump administration's strategy is 'impose tariffs first, then induce negotiations,' future tariffs are likely to be limited to creating volatility rather than exerting directional influence on stock prices," and "Chairman Powell's remarks at the House and Senate hearings scheduled for the 11th and 12th will also be important events. Accordingly, the domestic stock market this week is expected to show a stagnant index direction with a strong character of sectoral rotation trading."

Kim Ji-won, a researcher at KB Securities, noted, "The market's concerns have grown due to the unusually sharp rise in expected inflation. The Chicago Mercantile Exchange (CME) FedWatch tool shows the probability of a rate cut in February has dropped to 8%." She added, "Market trends are expected to be linked to inflation concerns, Trump's tariff policies, and Powell's remarks. Since interest rates and the dollar may rebound again, a calm response is necessary."