Asian stock markets saw a big drop on Friday due to growing concerns over the worsening trade conflict between the US and China. This comes after the White House confirmed that the US has now imposed a total of 145% tariffs on Chinese goods.
Japan’s Nikkei 225 index was the biggest loser in the region, falling by 5.6% in early trading. By mid-morning, the index had dropped 4.7%, reaching 32,969.95 points. The sharp decline followed an escalation in the US-China trade war, which had initially caused the Nikkei to rise.
In South Korea, the Kospi index fell 1.6%, dropping to 2,400.34 points as traders worried about the long-term effects of higher tariffs and possible retaliations from China. In Australia, the S&P/ASX 200 index fell 2.1%, closing at 7,552.10 points. Experts said that global uncertainty, especially mixed signals about US tariff policies, caused this decline.
Also Read: How Apple Is Beating Trump’s Tariffs: 600 Tonnes of iPhones Airlifted from India!
These losses in Asia followed a significant sell-off on Wall Street the day before, where the S&P 500 dropped 3.5%, wiping out much of the 9.5% rise from the previous day. The earlier rise had happened after President Trump paused some tariffs.
US-China Tariff War
The latest tariff increase came after President Donald Trump signed an executive order raising tariffs on Chinese imports to 125%, up from 84%. The order also included a new 20% tariff targeting fentanyl-related products from China. China responded by imposing its own 84% tariffs on US goods, which took effect at 12:01 pm on Thursday, according to China’s official news agency, Xinhua.
As the trade tensions continue to rise, experts warn that the global economy could face more uncertainty and challenges.
