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Asian markets fall as Trump's tariff war escalates

2025-02-03 08:29:00, Kosova & Bota CNA

Asian markets fall as Trump's tariff war escalates

Asian stocks have fallen after US President Donald Trump followed through on his promise to impose tariffs on Canada, Mexico and China.

Investors are bracing for a turbulent period that could hit the profits of big companies and hurt global growth.

Canada and Mexico have said they will retaliate with retaliatory tariffs, while China promised "appropriate countermeasures" and vowed to challenge Trump's move at the World Trade Organization.

Trump has said the tariffs are necessary to stem the flow of illegal drugs and immigration into the US.

Canada and Mexico are facing 25% tariffs on their exports to the U.S. Chinese-made goods will face a 10% tax, in addition to existing tariffs.

Following the news, Hong Kong's Hang Seng Index fell 0.4%, Japan's Nikkei 225 was 2.6% lower, South Korea's Kospi fell 2.5% and Australia's ASX 200 fell 1.8%.

Markets in mainland China remained closed for the Lunar New Year holiday.

Meanwhile, the US dollar was showing strength, rising to a record high against the Chinese yuan, while the Canadian dollar fell to its lowest level since 2003.

Trump has also vowed to impose tariffs on the European Union "very soon."

Charu Chanana, chief investment strategist at investment bank Saxo, warned that while tariffs may be beneficial to the US economy in the short term, in the long term they pose significant risks.

Trump said he would speak with the leaders of Canada and Mexico on Monday about the tariffs that will take effect at midnight Tuesday./ CNA





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