Markets Growing Numb to Trump’s Tariff Moves, Says CGS International CEO

As global trade tensions simmer under President Donald Trump’s aggressive tariff policies, markets appear to be reacting with surprising calm. Carol Fong, CEO of CGS International Securities Group, believes that global investors are becoming increasingly “desensitised” to the ongoing tariff drama.

Speaking at the Reuters Next Asia summit in Singapore, Fong noted that recent tariff announcements and policy shifts have had muted effects on global markets.

“If you look at the tariff situation overall, I think the markets are starting to get a bit desensitised,” Fong said. “Look what happened in the last two days when the tariff deadline lapsed — the market didn’t react badly.”

New Tariff Deadlines, New Market Reality

President Trump has set August 1 as a deadline for implementing “reciprocal” tariffs on nearly all U.S. trading partners, unless new trade deals are reached. Among the most significant new measures is a 50% tariff on copper imports, a move that could ripple across industries from housing and automotive to electronics and defense.

Despite the gravity of these announcements, investor reaction has been relatively subdued, suggesting a shift in how markets are processing geopolitical and trade risks.

“The market itself has been a bit desensitised,” Fong reiterated, hinting that volatility fatigue may be setting in.

China’s Strategic Pivot to Southeast Asia

Fong also highlighted a surge in Chinese companies diversifying their operations away from mainland China and into Southeast Asia. The shift is largely motivated by tariff uncertainty and the need to strengthen global supply chains.

“In fact, we see a lot more interest over the last six to nine months for Chinese companies coming out, building potential partners to diversify their base,” she said.

This trend is already reshaping trade flows and driving foreign direct investment (FDI) into the region.

Asia Still Attractive to Global Investors

Despite the trade war’s lingering effects, Asia remains a magnet for foreign capital, according to Uday Sareen, ING’s Chief Executive and Head of Wholesale Banking for Asia Pacific. He emphasized that Asia is outperforming the rest of the world in terms of FDI inflows.

“Asia continues to see more inflows of foreign direct investment compared with the rest of the world,” Sareen said.

India: A Standout Market with Caveats

Vis Nayar, Chief Investment Officer at Eastspring Investments, spotlighted India as a particularly strong investment destination due to its robust domestic economy and long-term potential.

“If I had to pick one market, I would stick to India in particular,” Nayar said.

However, he also cautioned that high valuations could pose risks for investors, stressing the need to be selective when allocating capital in India’s markets.

Conclusion: Calm Before the Next Storm?

While the U.S. has reportedly collected $100 billion in tariffs so far this year, according to Treasury Secretary Scott Bessent, that number could balloon to $300 billion by year-end. Trump’s tariff regime — part of his so-called “Liberation Day” strategy launched on April 2 — continues to reshape global trade.

But for now, investors appear to be taking it all in stride. Whether this is a sign of deeper confidence or just fatigue remains to be seen.