Stock markets across Asia fell on Thursday after US president Donald Trump announced sweeping new tariffs on imports, raising concerns about a potential global trade war and the economic fallout that could follow.
Tokyo’s Nikkei 225 dropped as much as 4 per cent in early trade before partially recovering to close 2.9 per cent lower at 34,675.97 on Thursday. South Korea’s Kospi slipped 1.5 per cent, while Hong Kong’s Hang Seng fell 1.4 per cent.
The Shanghai Composite dipped slightly by less than 0.1 per cent, and Australia’s ASX 200 was down 1.3 per cent.
India’s GIFT Nifty futures also indicated a weak start, suggesting the Nifty 50 may open lower after the US slapped a 26 per cent duty on Indian goods – one of the steepest among Washington’s close trading partners.
The sell-off came after Mr Trump imposed a 10 per cent baseline tariff on all imports into the United States and sharply higher duties on several key countries. China faces a combined tariff burden of 64 per cent when new and existing measures are counted, while Japan has been hit with a 24 per cent duty.
South Korea was levied 25 per cent, and the European Union 20 per cent. Taiwan and several Southeast Asian countries, including Vietnam and Bangladesh, are also facing steep new import penalties.
“This was the worst-case scenario that the market was expecting,” Jay Hatfield, CEO of Infrastructure Capital Advisors, told Reuters. “It’s enough to potentially send the US into a recession, and that’s why the futures are so weak.”
