Jordan Daily – Asian stocks slumped on Monday in a broad-based sell-off as U.S. President Donald Trump’s declaration of trade tariffs on China, Canada, and Mexico, ignited fears of a global trade war and significantly eroded risk sentiment.
U.S. stock index futures also tumbled during Asian trading after Trump’s announcement on Saturday, in anticipation of higher inflation arising from the tariffs.
Japan, S. Korea stocks drop 3% each on Trump tariffs.
The tariffs, which include a 25% additional levy on imports from Canada and Mexico and a 10% tariff on Chinese goods, have led to retaliatory measures from the affected countries.
Canada and Mexico have announced plans to impose their own tariffs on U.S. goods, while China intends to challenge the U.S. actions at the World Trade Organization.
This escalating tension has heightened concerns about disruptions to international trade, which could adversely affect export-dependent Asian economies.
South Korea’s KOSPI index fell 3% to its lowest level since early January.
Japan’s Nikkei 225 also slumped 3% to over a two-week low on Monday, while TOPIX dropped 2.3%.
Australia’s S&P/ASX 200 index slipped 1.9% after reaching a record high last week, while Singapore’s Straits Times Indexwas 0.4% lower.
The tariffs are also expected to contribute to rising inflation. Higher import costs can lead to increased prices for goods, which may be passed on to consumers.
Chinese markets were closed for the Lunar New Year holiday and will resume trade from Tuesday, while Hong Kong’s Hang Seng index declined 1.7%
Elsewhere, Futures for Nifty 50 indicated a sharp drop at open, while Thailand’s SET Index fell 1.8%.
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