The stock market collapsed across Asia on Thursday after US President Donald Trump announced a new tariff on imports, raising concerns about a possible global trade war and severe economic decline.
Tokyo’s Nikkei 225 fell to 4 percent in the initial trade before partially recovered at 34,675.97 on Thursday at 34,675.97 on Thursday. South Korea’s Kospi slipped 1.5 percent, while Hong Kong’s Hang Seng fell 1.4 percent.
Shanghai overall was less than 0.1 percent and Australia’s ASX 200 was reduced by 1.3 percent.
India’s markets also opened less, with the sense of more than 500 points and the Nifty slipped below 23,200, when the US slapped 26 percent of the duty on Indian goods – the most among the business partners close to Washington.
“Tariffs are significantly higher than anticipated and will disrupt global trade and, therefore, global development,” Macro strategist and global equities fund advisor in ionic assets said, Reuters said, Reuters said.
Mr. Trump imposed 10 percent baseline tariffs on all imports in the US and sold off after implementing high duties on many major countries.
China faces a joint tariff burden of 64 percent when new and current measures are counted while Japan is killed with 24 percent duty.
South Korea was imposed 25 percent and the European Union 20 percent. Taiwan and many Southeast Asian countries including Vietnam and Bangladesh are also facing new import punishment.
In the US, the stock fell after a futures announcement. S&P 500 futures fell 3.5 percent, while Dow Jones futures were 2 percent below.
The money markets reflected the investor’s restlessness, with the dollar falling to 148 yen and Mexican Peso also slipped. Gold and Treasury prices increased as traders moved towards safe assets.
The new tariff, unveiled by Mr. Trump, called him “Liberation Day”, representing the dramatic growth of his long -standing push to reopen the global trade system, inspiring the possibility of a business war and global economic decline.
“This was the worst situation that the market was expected to be expected,” said J Hatfield, CEO of Infrastructure Capital Advisors. “It is potentially enough to send America into a recession, and that’s why futures are so weak.”
Speaking from the White House Rose Garden, Mr. Trump argued that the measures were about fairness, calling them “mutual” tariffs, which other countries are tariff designed to combat or counter the duties on American goods.
“In many cases, the friend is worse than the enemy in terms of business,” said Mr. Trump.
The US President had earlier imposed 25 percent tariffs on car imports and expanded extended duties on a series of steel, aluminum and pharmaceuticals, chips, wood and copper.
But Wednesday’s announcement goes on, effectively fulfills new obstacles around the world’s largest consumer market.
“These figures aligned with aggressive tariff scenarios, pressurizing the exposure property,” said Uto Shinohara, senior strategist at Mesiro currency management.
Tariff hikes are likely to hit global supply chains, especially in areas such as electronics and automobiles, where manufacturing spreads in many countries.
Analysts have warned that business partners are likely to respond with their own counterants, increasing the risk of high consumer prices and supply disruption.
While some investors initially focus on the 10 percent headline rate, which was less than expected, the high country-specific tariff triggered the latest concern.
CIO Walter Todd at Greenwood Capital said, “We have found a side of the story, which America is doing.” “The other side is how other countries react.”
In Asia, the impact can be complicated by the fact that many of the affected countries are deeply integrated into the global manufacturing ecosystem.
Companies that transferred production from China to neighbors such as Vietnam and Bangladesh can now find themselves again in crossfire to avoid the previous tariff.
Tariff policy also weighed the prices of energy and commodity. The US benchmark crude fell from $ 2.08 to $ 69.63 per barrel, while Brent crude fell at $ 72.89.
After the announcement of Mr. Trump’s announcement, there is a sharp opposite of decades of decades of trade liberalization after the Second World War. Some analysts believe that if duties are entered, it can reopen global commerce. Others say that the move may purposefully be as a conversation strategy, although uncertainty on future policy is already weighing on business decisions.
“We can unfortunately turn into a very serious global trade war.”
