BANGKOK (AP) — Asian shares started trading lower on Tuesday following a sharp decline in U.S. stocks as higher tariffs were set to be imposed by U.S. President Donald Trump. Tariffs of 25% on Canada and Mexico were scheduled to take effect early Tuesday, with an additional 10% tariff being imposed on China. Beijing hinted at possible retaliation, focusing on U.S. farm products and food exports, according to state media reports. China, a significant importer of U.S. agricultural goods, particularly soybeans, may be impacted.
In Asia, Tokyo’s Nikkei 225 fell by 1.9% to 37,084.83, while Hong Kong’s Hang Seng lost 1.6% to 22,666.68. The Shanghai Composite index inched up by 0.2% to 3,310.35. South Korea’s Kospi rose marginally by less than 0.1% to 2,533.77. Meanwhile, Taiwan’s Taiex dropped by 0.9%, and most Southeast Asian markets also experienced declines.
On Monday, the S&P 500 fell by 1.8% to 5,849.72 after Trump stated that there was no room for further negotiations to lessen the tariffs on imports from Canada and Mexico. The Dow Jones Industrial Average decreased by 1.5% to 43,191.24, and the Nasdaq composite slumped by 2.6% to 18,350.19.
Trump’s announcement dashed hopes on Wall Street for a more amicable trade approach and came following concerns about the U.S. economy’s strength. The market’s recent slump has also affected high-flying sectors like Nvidia and Tesla, which experienced significant declines in value. In Europe, markets surged after an inflation report showed signs of easing in February, which could benefit the European economy.
Overall, the market response reflects growing concerns over the impact of U.S. tariffs on global trade and economic stability.
The European Central Bank, which investors widely anticipate will announce another reduction in interest rates later this week, spurred a significant surge in Germany’s DAX by 2.6% and a robust jump of 1.1% in France’s CAC 40. Non-U.S. stocks have shown superior performance compared to the S&P 500 this year, despite President Trump’s steadfast commitment to “America First” policies.
In further market activity on early Tuesday, the U.S. benchmark crude oil saw a decrease of 30 cents, trading at $68.07 per barrel on the New York Mercantile Exchange. Meanwhile, Brent crude experienced a 51-cent decline, reaching $71.11 per barrel.
The U.S. dollar weakened against the Japanese yen, sliding to 149.29 from 149.50 yen. Similarly, the euro saw a decrease to $1.0484 from $1.0488. Bitcoin’s value also dipped to $83,750, marking a 10.3% decrease, according to CoinDesk.
Contributions to this report were made by AP Business Writers Stan Choe and Matt Ott.
