Asian markets experienced significant turmoil following Donald Trump’s announcement of sweeping tariffs. The tariffs, which range from 10% to over 40%, have sent shockwaves through global financial systems. Gold reached a record high, while the yen strengthened against the dollar, reflecting investor anxiety. Stock markets across Asia plummeted, with Japan’s Nikkei index opening down by 3.4% and Australia’s market falling by 2%. South Korea’s Kospi also dropped by 2%, and Vietnam’s ETF fell more than 8% in after-hours trading.
The US’s decision to impose tariffs on imports has been criticized globally. Australian Prime Minister Anthony Albanese described the tariffs as “unwarranted,” emphasizing that they could alter Australians’ perceptions of their relationship with the US. South Korea’s acting President Han Duck-soo vowed to use “all capabilities” to mitigate the impact on businesses affected by the tariffs.
Analysts warn that these tariffs could exacerbate an already slowing global economy. The German Automotive Industry Association stated that US consumers would be particularly hard-hit, calling for the EU to respond with unity and negotiation readiness. Meanwhile, New Zealand faces a 10% baseline tariff, puzzling officials who argue that the US’s claim of a 20% tariff on their goods is inaccurate.
The new tariffs are set to take effect on April 5 for the universal 10% levy and April 9 for reciprocal tariffs. Special exemptions were granted to Canada and Mexico due to existing trade agreements. Trump justified the tariffs by accusing other nations of imposing unfair trade practices on the US.
— new from The Guardian