Shares in Asian stocks suffered on Monday after U.S. President Donald Trump shocked global investors, saying his planned reciprocity tariffs will target each country’s goals.
Announcements on reciprocity tariffs are expected this week on April 2, which previously believed they would impose the largest trade imbalance with the United States in only 10 to 15 countries.
But Trump's Sunday Statement He has incited concerns about global trade wars and recession “from all countries.”
Also on AF: China, Japan, South Korea strengthens trade relations because US tariff looms
These concerns hit hard in the Asian market on Monday.
The biggest loser in the region is Japan's Nikkei average, with Nikkei average of 4.05% with losses of more than 1,500 points, close to an eight-month low.
This is the biggest drop in the Nikkei daily decline since September 30. The wider Topix fell by 3.5%.
Japanese stocks have rolled up since Trump announced last week 25% tariff on imported cars and auto parts on Wednesday. The day after the tariffs were announced, Tokyo's shipping stock lost $16.5 billion in market value.
On Monday, the car inventory massacre continued, with Toyota and Honda tanks exceeding 3%, respectively, while Nissan fell more than 4%. Japanese automakers suffer the second highest U.S. car tariffs than Mexico.
Nikkei 225 lost More than US$288 billion in market value It has been closed today since Thursday.
The fact that the country is home to a wide range of chip tools industries has also exacerbated uncertainty about the Japanese market, and therefore it is also vulnerable to the additional chip-related tariffs promised by Trump. The planned countdown tariff will be under any other taxes, including taxes previously imposed on aluminum, steel and automobiles.
Monday's volatility made Japanese chip maker Renesas Electronics candidly appealing 11.21%. Meanwhile, the chip-related stock Tokyo Electronics and the best advantage fell by 6.57% and 7.65% respectively.
South Korea is in trouble
In addition to Japan, investors have also withdrawn from South Korea's stocks, with their automakers and chipmakers also exposed to Trump's automatic tariffs and planned bargaining tariffs.
Moody's analytical economists say that in Japan and South Korea, automatic tariffs can “reduce growth by 0.2 to 0.5 percentage points.”
It could also be one of the most stringent reciprocal tariffs, given that Trump accused Seoul of accusing the average tariffs in January of being the average tariffs in the United States.
The South Korean government rejected this claim. explain Its trade deal with the U.S. says U.S. goods face less than 1% tax in the country.
Still, Trump’s threat on Sunday stimulated South Korea’s benchmark KOSPI index to drop 3% on Monday, its lowest level since early February.
Kospi falls amplified by A Resuming short-term sales 17 months later. This is the first time the country has lifted the ban completely within five years.
One of the biggest losers in the local stock market is Chipmakers SK Hynix and Samsung Electronics, down 4.3% and 3.99% respectively.
Meanwhile, battery maker LG Energy fell more than 6%. Hyundai Automakers and Kia also fell by more than 3%.
Taiwan jitters
Stocks are also down in Taiwan, which is believed to have one of the 15 countries with the highest trade surplus with the United States.
Taiwan's weighted index fell 4.38% on Monday. Chipmakers Mediatek and TSMC's Taipei-listed stocks fell 5.12% and 4.41% respectively. Electronics giant Foxconn (trades in Honghai Precision Industry) fell 5.19%.
In addition to reciprocity tariffs, Taiwan is also vulnerable to Trump's potential semiconductor levy. The island is home to dozens of chip manufacturers that provide semiconductors to almost all industries around the world.
Analysts from Ing and Morgan Stanley explain Announcement from TSMC, the world's largest contract manufacturer Invest $100 billion in the United States It can soften Trump's position on Taiwan.
But there is still uncertainty after Trump Reiterate Last week, he will impose import tariffs on semiconductors on the “route”.
On Sunday night, Taiwan President Lai Ching-te met with senior officials to discuss the possible impact of U.S. tariffs and received the latest news on contingency plans. Reuters report.
Haven demand
Elsewhere in Asia, Hong Kong and mainland China markets fell 1.33% and 0.47% respectively. Manila's share price also fell 1.50%. Markets in India, Indonesia, Malaysia and Singapore are on vacation.
MSCI's most extensive index in the Asia-Pacific region outside Japan fell 2.03%.
Foreigners pulled more than $4 billion from Southeast Asian stocks in the March quarter, marking the biggest sum since 2020.
“Now, the market will be completely at the mercy of the headlines related to tariffs,” said Chris Weston of Pepperstoton. AFP.
European markets have also fallen sharply, with analysts saying tariff uncertainty is a key reason behind stock turmoil.
“For years, we have found ourselves really worried about risky assets,” said Ajay Rajadhyaksha, head of interest rate markets at Barclays.
He added: “If policy chaos and trade wars further intensify, then recession is now a real risk to major economies.”
Comply with these questions, Goldman Sachs Increased the possibility of a recession in the United States To 35%, it also predicts a decline in GDP growth in the world's largest economy.
Meanwhile, a leap in the safe haven industry sent gold to another record-breaking senior. Investors also accumulate sovereign bonds and yen.
Why does Trump impose tariffs?
Trump believes tariffs are a way to protect the domestic economy from unfair global competition and provide the United States with better bargaining chips.
He has pledged to propose a large-scale tariff plan on Wednesday, calling it a “liberation day.” He has imposed tariffs on aluminum, steel and automobiles and has increased taxes on all goods from China.
He said he now intends to impose a series of “mutual tariffs” on countries that charge fees to the U.S. exports and promises to align their responsibilities.
Trump administration officials, including Treasury Secretary Scott Bessent, have previously said that the majority of U.S. mutual tariffs will be concentrated in the 15 countries with the highest trade surplus with the U.S., while Trump claims it will be “spacious.”
Bessent calls these countries “Dirty 15”, but has not been named yet. According to the U.S. Census Bureau, it includes China, South Korea, Taiwan and the European Union.
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