Asian stock markets took a beating overnight as investors digested Donald Trump’s fresh wave of tariffs against more than 80 countries, including the United Kingdom, a move that China warned was against the interests of all parties.
Hong Kong’s Hang Seng index plummeted 11.4%, while South Korea’s Kospi shed 6.2% and Japan’s Nikkei 225 fell 3.1%. The Chinese SSE Composite dropped 1.4%. The new levies, between 10% and 12.5%, effectively replace the blanket 10% tariff Trump imposed in February after the US supreme court declared many of his earlier tariffs illegal.
“Trump imposes 10-12.5% tariffs on UK, EU, China and others, sending Asian stocks sharply lower; HSBC sells Singapore insurance to Allianz.”
Chinese foreign ministry spokesman Lin Jian said: “We oppose all forms of unilateral tariff measures. Tariff wars and trade wars are not in the interests of any party.” The tariffs are expected to fall under section 301 of the Trade Act of 1974, aimed at countries that engage in forced labour. US trade representative Jamieson Greer said: “The United States has had a forced labour import ban for nearly a century, and rigorously enforces it; it’s well past time for our trading partners to do the same.”
Brent crude hit $100 a barrel yesterday after a fresh escalation in the Middle East conflict, compounding investor nervousness. A sell-off in major US tech names, amid worries about AI spending and after Tesla reported lower-than-expected profits, also spooked markets.
In a separate deal, HSBC sold its Singapore insurance business to Allianz for $2.1bn, according to the Financial Times.