 "US President Donald Trump arrives at the White House in Washington, D.C., U.S., February 19, 2025. (Photo: Reuters)")
US President Donald Trump’s rollout of tariffs tanked Asian markets in early trade on Thursday.
Japan’s Nikkei 225 fell by nearly 3.4 per cent, or 1,222 points, in the early hours and the broader Topix index was down 3.32 per cent, or 87.93 points.
In Hong Kong, the Hang Seng Index fell 2.43 per cent, or 564.32 points, whereas mainland China’s Shanghai Composite Index fell 0.91 per cent, or 30.52 points.
Trump on Wednesday announced the most expansive tariffs so far , imposing 10 per cent tariffs on all trade with the United States and imposing higher tariffs on a select group of countries, including China, Japan, South Korea, and India.
Trump has imposed 34 per cent tariffs on China, 46 per cent on Vietnam, 26 per cent on India, and 26 per cent on South Korea.
Read complete coverage of Trump’s tariffs here
These tariffs by Trump on China are on top of 20 per cent tariffs that he has already imposed in two tranches so far, which themselves came on top of the targeted tariffs imposed previously by the Joe Biden administration.
Trump’s tariffs are expected to cost the world dearly and even push the US economy towards a crisis — Moody’s has raised odds of a recession to 40 per cent amid tanking consumer sentiment, persistent inflation, and poor business sentiment. A study by the Aston Business School has said that a trade war could cost the world as much as $1.4 trillion.