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Asia-Pacific markets are poised to plunge on Thursday, after U.S. President Donald Trump imposed hefty reciprocal tariffs on over 180 countries and territories – several of which are in the region.
In charts posted on social media, the White House showed the effective tariff rates they claim other countries impose on American goods, including by “currency manipulation and trade barriers.”
The White House told CNBC’s Eamon Javers on Wednesday that the new reciprocal rate on China will be added to existing tariffs totaling 20%, meaning the true tariff rate on Beijing under this Trump term is 54%.
Meanwhile, goods from India, South Korea and Australia face tariffs of 26%, 25% and 10%, respectively.
Australia’s S&P/ASX 200 fell1.74%.
Japan’s benchmark Nikkei 225 tumbled 4% lower while the broader Topix index also declined by a similar margin.
In South Korea, the Kospi index plunged 2.31% at the open, while the small-cap Kosdaq was down 1.92%.
Futures for Hong Kong’s Hang Seng index stood at 23,094, pointing to a weaker open compared to the HSI’s Wednesday close of 23,202.53.
Gold prices hit a record high and were trading at $3,156.75 per ounce as at 7.28 a.m. Singapore time, as investors flocked to the precious metal.
U.S. futures cratered as Trump’s sweeping tariffs of at least 10% and even higher for some countries, raised the risks of a global trade war that would adversely affect the already slowing U.S. economy.
Overnight stateside, stocks climbed in yet another volatile session.
The S&P 500 advanced 0.67% to close at 5,670.97, while the Nasdaq Composite added 0.87% and ended at 17,601.05.
The 30-stock Dow Jones Industrial Average added 235.36 points, or 0.56%, and settled at 42,225.32.
Shares of Tesla climbed 5.3%, rising on news that President Trump has signaled to his cabinet that Elon Musk will be stepping back
— CNBC’s Brian Evans and Sean Conlon contributed to this report.
