Asian stocks plunge as Trump announces new tariffs on global imports
Asian markets slide as global trade war fears mount
Equities across Asia fell sharply on Friday as mounting concerns over a global trade war weighed on investor sentiment.
Investor anxiety surged following U.S. President Donald Trump’s announcement of new and accelerated tariffs. Trump confirmed that 25% duties on imports from Canada and Mexico will take effect on March 4, earlier than the previously suggested April 2 date, reports Reuters.
Goods from China will face an additional 10% duty, and he also vowed to impose 25% tariffs on European Union imports. These developments triggered a broad sell-off in equity markets, with Japan’s Nikkei plunging 3.3% and South Korea’s Kospi falling 3.2%. Taiwan’s stock index dropped 1.5%, Australia’s benchmark declined 1.3%, and Hong Kong’s Hang Seng slid 2.3%.
Mainland China’s blue-chip index saw a relatively modest 0.8% decline. Pan-European STOXX 50 futures pointed to a 1.2% drop, while U.S. S&P 500 futures fell 0.2% after the index tumbled 1.6% overnight.
Tech Sell-Off and Currency Movements
Technology shares took an additional hit after a sell-off in AI chipmaker Nvidia and other "Magnificent Seven" Wall Street mega-cap stocks. Despite Nvidia’s solid earnings report, investors judged it harshly, leading to a broader pullback in tech shares.
The safe-haven yen and Swiss franc strengthened, with the yen receiving further support from lower U.S. Treasury yields. Meanwhile, Bitcoin dipped below $80,000 for the first time in more than three months.
Commodity and Bond Market Impact
The stronger U.S. dollar pressured commodities, leading to a decline in gold prices. However, oil prices held onto most of Thursday’s gains after Trump canceled Chevron’s license to operate in Venezuela, sparking supply concerns.
With heightened trade tensions and the market’s increased sensitivity to tariff announcements, analysts warn that further downside risks remain. Many expect that China’s National People’s Congress meeting next week could bring additional stimulus measures to counteract the economic impact of escalating trade disputes.
Additionally, U.S. President Donald Trump and Nvidia CEO Jensen Huang met at the White House to discuss the rise of China's AI company, DeepSeek, and the tightening of artificial intelligence (AI) chip exports.
