Asian stocks fell sharply as Donald Trump’s comments on potential new tariffs reignited fears of a prolonged trade war with China. Major benchmarks across the region closed lower, with Japan’s Nikkei 225 down 2.1% and Hong Kong’s Hang Seng Index slipping 1.8%. China’s CSI 300 also dropped 1.5%, as investors weighed the economic impact of escalating tensions.
The remarks, suggesting tariffs could rise if a deal isn’t reached soon, sent ripples across global markets, overshadowing recent optimism from earlier trade negotiations. Currency markets also reacted, with the Chinese yuan weakening against the dollar, while safe-haven assets like gold edged higher. Analysts noted the uncertainty could pressure Asian economies already facing slower growth.
The market decline underscores the fragility of investor confidence as geopolitical risks remain unresolved. If tensions persist, further volatility in Asian markets is likely.
