Asian stock markets plummet in aftermath of Trump tariffs announcement
Stock markets across Asia fell on Thursday after US president Donald Trump announced sweeping new tariffs on imports, raising concerns about a potential global trade war and the economic fallout that could follow.
Tokyo's Nikkei 225 dropped as much as 4 per cent in early trade before partially recovering to close 2.9 per cent lower at 34,675.97 on Thursday. South Korea's Kospi slipped 1.5 per cent, while Hong Kong's Hang Seng fell 1.4 per cent.
The Shanghai Composite dipped slightly by less than 0.1 per cent, and Australia's ASX 200 was down 1.3 per cent.
India's GIFT Nifty futures also indicated a weak start, suggesting the Nifty 50 may open lower after the US slapped a 26 per cent duty on Indian goods – one of the steepest among Washington's close trading partners.
The sell-off came after Mr Trump imposed a 10 per cent baseline tariff on all imports into the United States and sharply higher duties on several key countries. China faces a combined tariff burden of 64 per cent when new and existing measures are counted, while Japan has been hit with a 24 per cent duty.
South Korea was levied 25 per cent, and the European Union 20 per cent. Taiwan and several Southeast Asian countries, including Vietnam and Bangladesh, are also facing steep new import penalties.
'This was the worst-case scenario that the market was expecting,' Jay Hatfield, CEO of Infrastructure Capital Advisors, told Reuters. 'It's enough to potentially send the US into a recession, and that's why the futures are so weak.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
10 minutes ago
- Yahoo
US Steel Sale to Nippon Steel Poised to Close After Trump Deal
(Bloomberg) -- Nippon Steel Corp. won conditional US approval for its $14.1 billion purchase of United States Steel Corp., capping a lengthy saga in a tie-up that will create one of the world's largest steel companies. Shuttered NY College Has Alumni Fighting Over Its Future Trump's Military Parade Has Washington Bracing for Tanks and Weaponry NYC Renters Brace for Price Hikes After Broker-Fee Ban Do World's Fairs Still Matter? As Part of a $45 Billion Push, ICE Prepares for a Vast Expansion of Detention Space In a release Friday, the companies said they've committed to a national security agreement proposed by the Trump administration, which earlier cleared the deal subject to those terms. As part of the $55-per-share deal, the Japanese company will invest an additional $11 billion by 2028, including an initial commitment in a greenfield project that would be completed after 2028. Nippon had previously raised its pledged additional investment in an effort to win President Donald Trump's approval. Nippon Steel will also spend an extra $3 billion after 2028 for a new steel mill, according to people familiar with the matter. That would push the total additional investment — on top of the purchase price — to $14 billion. Earlier Friday, Trump formally opened the door to approving the sale of US Steel by submitting the agreement to the companies and amending former President Joe Biden's move to block the agreement in an executive order. The president's action cleared the sale so long as the companies comply with the government's terms. 'President Trump promised to protect American Steel and American Jobs — and he has delivered on that promise,' White House spokesman Kush Desai said in a written statement. 'Today's executive order ensures US Steel will remain in the great Commonwealth of Pennsylvania, and be safeguarded as a critical element of America's national and economic security.' Nippon Steel and US Steel in the release said they had received regulatory approvals and that 'the partnership is expected to be finalized promptly.' The deal is expected to close by June 18, the merger agreement deadline, Japan's Nikkei reported on Saturday, without saying where it got the information. Trump earlier this week said the US would receive a so-called golden share in the post-transaction company, though it's not clear what that would entail. The companies confirmed that the US would get a golden share but didn't elaborate. The terms of the security agreement include significant and unprecedented US control measures, as well as certain control over some board seats and requirements that some leadership roles go to American citizens, according to a person familiar with the pact, speaking on condition of anonymity. The golden share does not include an equity stake in the company, the person said. Earlier: Nippon Steel Plans $6 Billion Investment in Its Japanese Mills 'The Japanese government believes that this investment will strengthen the ability of the Japanese and US steel industries to generate new innovation and lead to the strengthening of the close partnership between Japan and the US,' Japan's Minister of Economy, Trade and Industry, Yoji Muto, said in a written statement. 'We welcome the decision of the US government.' Trump and Biden as well as former Vice President Kamala Harris campaigned against the deal, before the former president blocked it in January. Trump has since reversed his position, insisting that the agreement would preserve steel jobs in the US. The text of the security agreement hasn't been released. Trump and others have previously announced other elements of the deal, including bonuses to steelworkers, a requirement to keep existing blast furnaces running for a decade, and government veto power to retain control over the board of the US Steel subsidiary. Trump has also hailed the accord as vindication of his trade policies, which have seen the administration levy tariffs in a bid to pressure companies to shift more manufacturing to the US. Japan has been engaging in negotiations with the US over trade in a bid to avoid higher levies Trump has threatened. Trump's decision to champion Nippon Steel's bid offers to provide fresh momentum for those talks. Trump held a rally in Pennsylvania two weeks ago, at US Steel's iconic Mon Valley facility, celebrating the deal with a crowd of steelworkers, even though it had not yet been finalized. Earlier: US, Mexico Near Deal to Cut Steel Duties and Cap Imports Trump also used that event to announce he was doubling his tariffs on steel and aluminum, raising them to 50% from 25%. Since that rally, government officials, company executives and deal advisers worked to hammer out the finer details and get the final signatures. The deal creates a combined company that will be the world's second-largest steelmaker. It will become a formidable domestic competitor to Nucor Corp., which for a generation has dominated the American steel industry. The acquisition also clears the way for enhanced steelmaking in areas the US has lagged in recent years, including the type of steel critical to bolster ailing electric grids across the country. The Japanese steelmaker's takeover became a political lightning rod after the leadership of the United Steelworkers – based, like US Steel itself, in Pittsburgh – staunchly opposed the tie-up. Biden sided with them, as did Trump. The deal has taken a winding path with extensions, a Biden block, a legal fight, and then Trump's decision to reexamine it before ultimately clearing it. Nippon Steel and US Steel have steadily tried to address worries, with Vice Chairman Takahiro Mori making repeated visits to the US to clinch the deal. Divisions within the union were laid bare through the process, with local union leaders expressing support for the deal and breaking with their national leadership. Trump's reversal was a few months in the making. In February, he surprised the parties by blessing some kind of a minority stake — an announcement they hadn't been privy to and didn't understand. The deal, then and now, was built on Nippon Steel buying US Steel entirely. The question was mitigation measures. The president said he supported a 'planned partnership' between the companies on May 23, without providing details of an announcement that appeared to bless the original deal with additional mitigation measures. --With assistance from Jennifer A. Dlouhy, Meghashyam Mali and Yoshiaki Nohara. (Updates with potential closing timeframe in eighth paragraph.) American Mid: Hampton Inn's Good-Enough Formula for World Domination The Spying Scandal Rocking the World of HR Software New Grads Join Worst Entry-Level Job Market in Years As Companies Abandon Climate Pledges, Is There a Silver Lining? US Tariffs Threaten to Derail Vietnam's Historic Industrial Boom ©2025 Bloomberg L.P.
Yahoo
13 minutes ago
- Yahoo
Lebanon will keep its airspace open, minister says
BEIRUT (Reuters) -Lebanon will aim to keep its airspace open, a minister said on Saturday, hours after officials said the airspace would be shut down in the evening amid Iran-Israel conflict. "The airport will remain open unless something emerges beyond our control," Lebanese Minister of Public Works and Transport Fayez Rasamny said while touring in Beirut-Rafic Hariri International Airport. The Middle East Airlines (MEA), Lebanese national carrier, will increase its flights to compensate the delayed flights, Rasamny said. Earlier, state news agency NNA cited the Lebanese Civil Aviation Authority as saying the country would temporarily reopen its airspace on Saturday at 10:00 a.m. (0700 GMT), and it would be shut down again from 10:30 p.m. till 6:00 a.m. on Sunday.
Yahoo
13 minutes ago
- Yahoo
People Who Voted For Trump In 2024 Are Sharing How They Really Feel About The Tariffs
I was pretty shocked the other day to read about actual price differences caused by tariffs, and I wanted to learn specifically about how Trump voters feel about the tariffs — whether they think they're a good idea or not. So, I decided to ask Trump voters to tell me what they really think about the tariffs; and, for good measure, I turned to the answers to a post on the subreddit Ask Trump Supporters that asked, "Do Trump supporters see the new tariff policy as a smart negotiating tactic with allies, or is there concern it could backfire?" Here are some people's answers: 1."I love the idea of Trump pushing the tariffs. It will teach the consumer what is really important to be spending their money on and learn how to be conservative. Plus bring back the businesses to the grand ol' USA." —Anonymous, 72 years old, Kansas City, Missouri 2."Not me, but my grandad. He has said that he regrets voting for Trump, even though he hates Harris. One, the tariffs are going to make his small business (golf balls) suffer, and he's worried about my business (cosmetics) suffering, too." "Two, he thinks Trump has dementia, because of the way Trump has been talking and stuff. He also thinks Trump is really violent. Also, my grandad was absolutely horrified when Elon did the Nazi salute thing (why did everyone just forget about this?) because, even though my grandad is Catholic, he has multiple Jewish friends, and was actually the one who kickstarted my interest in the history of the Holocaust. When Trump made that 'joke' about wanting to be the new Pope, that was the breaking point for him." —Anonymous 3."Good decision, time will prove it was a good one." —Anonymous, 78, Moline, Illinois 4."Tariffs are not going to help small businesses or consumers. A tariff is a tax that is passed on to the consumer. The government will collect this tax. What they will do with it is anyone's guess." "Trump lied to his voters. Tariffs increase prices of goods and services. Once prices go up they will never come down. Many small businesses will close as they will not be able to pay the insurmountable prices added to products which were already too high. Many people will lose their jobs, and things will just get worse. Meanwhile, Trump is making all types of deals in the Middle East for his business. God bless America." —Anonymous 5."My boyfriend voted for him in 2016, 2020, and 2024, and he still argues that China (or whoever) pays the tariffs." —Anonymous, 46, California Related: This FSU Student Had A Scathing Message For Donald Trump, And It's Going Mega Viral 6."Absolutely genius. Europe is already buckling. They want reciprocal free trade, but are not yet willing to remove VAT on imports and all the other shenanigans they pull to restrict trade. Trump is not falling for it." —u/whateverisgoodmoney "What exactly has been gained by all this chaos?" —u/dsteffee "Nothing yet. Trump is offering time to negotiate. But in a few months, deals come off the table, and they must suffer the tariffs or comply." —u/whateverisgoodmoney 7."Well, I'm skeptical and on the fence. There are countries that totally deserve, like, a 300% tariff, like China. And I've always been very, VERY suspicious of a global economic system that seems to favor a country like China just too much. Let's see what happens." —u/Ivan_Botsky_Trollov "I just don't get how this hurts China. How does this not favor China more and potentially catapult China into being the reserve currency/preeminent economic superpower? To me this feels like the US just conceding the top spot for nothing, while China gets to swoop into all of these other countries and say, 'We've got you, we won't abandon you like the US did,' slowly building their sphere of influence until they have the political and military cache to strongarm the US in diplomatic situations." —u/Ok-Release1928 8."I hope it's just a negotiating tactic in order to get other countries to lower their tariffs against us, something everyone should support. But I think Trump might actually just love tariffs and hate deficits." —u/flyingchimp12 Related: "There's No More Hiding Their Ideology" — People Cannot Believe This "Terrifying" Post By Trump Is Real 9."It's a risky gambit, I won't deny that. But what we were doing was unsustainable and going to bankrupt us in time, most likely much sooner than we'd like, and I don't hear Democrats offering any better alternatives, just screaming, 'Trump Bad!'" "What Trump's trying to do — if it succeeds — could pay off big-ly, enough that even the more moderate of Trump's opponents might be forced to admit that he did a good thing. Heck, if Trump can simply get the countries with tariffs on us right now to lower their existing tariffs in exchange for our previous tariff rates, that alone would do a lot. If we can get reciprocal tariffs with countries that enjoy other benefits from the US, such as funding or alliance stuff, even better." —u/Jaded_Jerry 10."This isn't about making life easier for investors. Sure, once a new business is established, it'll be more competitive with experience, and perhaps not need tariffs to be competitive in four years." "What it's really about is empowering those willing to do work, and making those businesses viable before the next presidency. I'm sure some tariffs will remain in four years, and hopefully the next president sees the wisdom in maintaining them." —u/neovulcan 11."I think it's more than a negotiating tactic, though he is obviously using them to that effect at times. But I think Trump is not a free trader at his core, and do not think his goal is just to get other countries to lower their trade barriers to zero (they won't do that anyway)." "I think Trump views us as having gone way too far in the direction of maximizing short-term profit by eating the seed corn of industry, so to speak. It's a long-term and potentially watershed policy shift with huge ramifications. There are definitely nerves and there are definitely risks." —u/KnownFeedback738 12."I don't have confidence that the tariff policy laid out last week will be successful. They were also calculated incorrectly, and Trump likely exceeded the legal authority he is using to levy the tariffs." —u/Gaxxz 13."Somehow, back in the 1950s-1980s, people managed to buy lots of American goods without even owning credit cards, generally. I wonder if local manufacturing jobs helped. The 1970s oil crisis created inflation twice as high as it's ever been in your life (unless you're over 50). And nobody even knows. By the Reagan '80s boom, it was forgotten. All it did was spur the invention of fuel-efficient cars." Scott McPartland / Getty Images, NBC —u/itsakon 14."More competition for workers in USA means wages go up." "30% extra import tax means the cost price of a Nike shoe they sell for $90 in the USA goes up from 10 dollars to 13 dollars. Nike can decide if they charge the three dollars extra to customers, take it from their enormous yearly profit, or if they build more shoe plants in the USA so there is more work in the USA. If they choose A or B then the government has three dollars they don't have to get somewhere else." —u/lordtosti 15."We don't have enough thinking-type jobs to sustain young US workers. I don't know if the country will make more money, but the goal is better jobs than young workers currently can access." —u/noluckatall 16."It's a risk. But Trump is not the habit of letting things age — he wants to make deals. Some countries he might want to keep tariffs on, if it's judged to be good for the US. Otherwise, tariffs should be lower a year from now." —u/jackneefus finally: "I honestly don't know; at this point, I'm waiting to see what happens." —u/beyron What do you think? I'm interested in hearing all your opinions down in the comments below. Or, if you have something to say but prefer to stay anonymous, you're more than welcome to write in to the anonymous form below. Please note: some comments have been edited for length and/or clarity. Also in In the News: Well, Well, Well, For The Second Time In 2 Weeks, People Are Letting JD Vance Know EXACTLY How They Feel About Him In Public Also in In the News: This Dem Lawmaker Is Going Viral For His Extremely Shady Question To Secretary Kristi Noem Also in In the News: This Conservative Said He Wears A Fake ICE Uniform For A Really, Really, Really Gross Reason
