Asian Markets Slide After Trump Announces Major Tariff Hikes
Asian stock markets slumped after former U.S. President Donald Trump announced significant increases in tariffs on imports from around the globe.
Tokyo’s Nikkei 225 briefly dropped 4% before closing down 3.3% at 34,566.36, with automotive and banking stocks leading the decline. Mitsubishi UFJ Financial Group plunged 8.3% as the newly announced 24% tariffs raised concerns over Japan’s export-reliant economy and dampened expectations of further interest rate hikes by the central bank. Mizuho Financial Group fell 9.2%, while Sony lost 5.6% and Toyota slipped 6.3%.
South Korea, facing a 25% tariff, saw its benchmark Kospi index fall 1.1% to 2,478.49.
In Hong Kong, the Hang Seng index dropped 1.9% to 22,776.00, while mainland China’s Shanghai Composite edged 0.2% lower to 3,342.39.
Yeap Junrong, a market strategist at IG, described the announcement as a “major shock,” highlighting that China was hit particularly hard with an additional 34% tariff—bringing its total tariff burden to 64% when previous measures are included.
Elsewhere in the region, Australia’s S&P/ASX 200 declined 0.9% to 7,859.70. In Thailand, the SET index lost 1% following the imposition of a 36% tariff on Thai exports to the U.S.
