Asia-Pacific Markets Fall as Trump Imposes Sweeping Tariffs on Key Trade Partners

Asia-Pacific markets experienced significant losses on Monday following the announcement by U.S. President Donald Trump of tariffs on goods from Canada, Mexico, and China. Australia’s S&P/ASX 200 dropped by 1.79%, Japan’s Nikkei 225 fell 2.66%, and South Korea’s Kospi declined by 2.52%. These declines reflected market anxiety as investors braced for the potential economic impact of the new trade barriers

The decision to impose tariffs, including a 25% tariff on imports from Mexico and Canada and a 10% tariff on Chinese goods, has intensified global market concerns. Although Chinese markets were closed for the Lunar New Year, other regions like India also showed declines, with the Nifty 50 and Sensex down by 0.56% and 0.5%, respectively

Shares in major Japanese automakers took a hit, with Honda, Toyota, and Nissan seeing significant drops in their stock prices. The tariffs were particularly concerning for companies reliant on cross-border trade between the U.S. and these countries. Similarly, Taiwanese firms such as TSMC and Foxconn faced losses, partially due to the broader negative sentiment tied to Trump’s trade moves and the fallout from AI competition.

Chinese tech stocks were also under pressure, with companies like Alibaba and Meituan seeing declines. Alibaba’s stock reversed a positive trend, dropping nearly 4% as investors digested the impact of the tariffs. Additionally, global tech stocks faced selling pressure, particularly after a new AI model from Chinese startup DeepSeek threatened to disrupt the market.

In the wake of the tariff announcement, cryptocurrencies also felt the pressure, with Bitcoin dipping below $97,000. On the flip side, traditional safe-haven assets like gold saw a slight uptick, as investors sought stability amidst the heightened economic uncertainty caused by Trump’s trade decisions.

Source: CNBC