Asian stocks sink following Trump’s tariff announcement

U.S. President Donald Trump’s tariffs put pressure on Asian markets, causing them to decline as they reignite concerns over a global trade war that could further impact already struggling economies.

Seoul tanked more than 3% and Tokyo lost 2.9%, while Shanghai, Manila and Jakarta were at least 2% lower on Friday. Sydney, Mumbai and Bangkok dropped more than 1%, with Singapore also lower.

Among the worst-hit were chip firms, with Samsung and SK hynix well down in Seoul, Advantest tanking almost 9% in Tokyo, and Tokyo Electron shedding more than 4%. Japanese tech investor SoftBank was also sharply lower.

Among auto firms, Toyota, Nissan and Suzuki all fell deep into the red in Tokyo.

Hong Kong was off more than 3%, with high-flying tech firms also weighed by profit-taking at the end of a blockbuster February that has helped the Hang Seng Index to a three-year high.

‘Numerous difficulties’

Economists are increasingly concerned for the world outlook owing to Trump’s insistence on hammering partners blamed for unfair practices, drug trafficking and immigration issues—and warning of levies on key sectors including auto, semiconductors and commodities.

After a relatively upbeat month on markets, Trump dealt a fresh blow this week, confirming that 25% tariffs on Mexico and Canada would go into effect on March 4. He had also warned the European Union that it could be hit with 25% duties.

China hit back at a warning of further measures against its goods, saying Friday such a move would “seriously impact dialogue” between the two countries on narcotics control and accused Washington of “blackmail”.

“Tariffs are back in the crosshairs, and a market that had reduced its sensitivity to recent tariff headlines has had to reconsider that reaction function,” said Chris Weston, of Pepperstone Group.

China’s leadership is due to meet next week to map out their plans for the economy this year, with Trump high on the agenda, along with how to kickstart consumer activity and support the crucial property sector.

President Xi Jinping said Friday that the economy faced “numerous difficulties” in an article set to be published this week ahead of the meeting.