Tariffs: Trump rejoices at Asian stock market plunge

New tariff measures imposed by the US cause financial markets across Asia to plummet. China and Japan react, while Trump defends the hard line: ‘It’s medicine that works’

The duties imposed by the Trump administration continue to shake international markets. Asian stock exchanges slumped across the board this morning, exacerbating the global economic crisis triggered by the trade war between the US and China. Japan’s Nikkei 225 index lost 5.79%, Hong Kong’s Hang Seng 10%, and the Taiwan Weighted Index slipped 9.61%. Also down were the South Korean Kospi (-4.14%), the Shanghai Composite (-6.5%) and the Australian S&P/Asx 200 (-3.82%).

According to analysts, the wave of selling in the markets reflects the growing uncertainty caused by protectionist measures. Asian economies, which are heavily dependent on exports to the United States, risk heavy setbacks.

Tensions increased after China’s response to US tariffs, with the introduction of a 34% tariff on all US goods. ‘US futures tumbled Sunday night after markets had already lost more than $5.4 trillion in value,’ CNN reports.

Aboard Air Force One, President Trump defended the measures taken: ‘Sometimes you have to take medicine to fix something. The partners are sitting at the table, they want to talk’. According to the president, China would have agreed to a deal on TikTok had it not been for the tightening of tariffs.

Meanwhile, Beijing defends its position: ‘The duties serve to bring the US back on track,’ said Vice Commerce Minister Ling Ji, assuring that China remains open to foreign investment.

On the diplomatic front, Japanese Premier Shigeru Ishiba announced a trip to the US to discuss the new 24% tariff on Japanese exports with Trump. ‘The decision is extremely disappointing. We will take all necessary measures to support the national economy,’ said Ishiba, promising aid to businesses and measures to protect jobs.

Taiwan’s position was more cautious: President William Lai declared that Taipei would not take any retaliatory measures against the 32% tariffs imposed by Washington, in order to foster dialogue and strengthen trade cooperation with the US.

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(Photo: © AndKronos)