Asian share markets precipitate following the announcement of the Trump rates

Share markets On the other side of Asia he fell on Thursday after the President of the United States Donald Trump Announcement of new rates for importsRaise worries for a potential global commercial war and serious economic repercussions.

Tokyo Nikkei 225 dropped by 4 % in the first exchanges before partially recovering to close 2.9 percent less to 34,675.97 on Thursday. South KoreaKospi slipped by 1.5 percent, while Hong KongSeng Hang dropped by 1.4 percent.

THE Shanghai Composite Lightly immersed less than 0.1 percent and Australia’s ASX 200 fell by 1.3 percent.

IndiaThe markets were also open at the bottom, with the Sensex that drops by over 500 points and the Nifty 50 slips below 23.200 after the United States slapped a 26 % duty on Indian assets, one of the most steep commercial partners of Washington.

“The rates are significantly higher than expected and will interrupt global trade and, therefore, global growth,” Ankita Pathak, Macro Stratega and Global Equal Consultant at Ionic Asset told Reuters.

The Sell-off came after Mr. Trump has imposed a basic rate of 10 % on all imports in the United States and strongly higher rights in different key countries.

China has to face a 64 % combined tariff burden when new and existing measures are counted while Japan has been hit with a 24 % duty.

South Korea 25 % and 20 % of the European Union was received. Taiwan and several countries of the South -est Asia, including Vietnam AND BangladeshThey are also facing new steep import penalties.

In the United States, future shareholders precipitated after the announcement. The Futures S&P 500 decreased by 3.5 percent, while the Futures Dow Jones dropped by 2 %.

The currency markets reflect the discomfort of investors, with the dollar falling to 148 yen and also the Mexican weight that slipped. The prices of gold and the treasure increased while traders moved towards safer activities.

The new rates, revealed by Trump on what has nicknamed “Liberation Day”, represent a dramatic escalation of its long -standing push to reshape the global commercial system, pushing the fears of a commercial war and a global economic impact.

“This was the worst scenario that the market expected,” he told Jay Hatfield, CEO of Infrastructure Capital Advisors, Reuters. “It is enough to potentially send the United States to a recession, and that’s why future are so weak.”

Speaking from the rosette of the White House, Trump claimed that the measures concerned equity, calling them “mutual” rates designed to combine or contrast the duties that other countries are based on US assets.

“In many cases, the friend is worse than the enemy in terms of trade,” said Trump.

The President of the United States had previously imposed 25 % rates on cars imports and expanded duties on steel, aluminum and a series of other goods such as pharmaceutical products, chips, wood and copper.

But Wednesday’s announcement goes further, effectively erecting new barriers in the largest consumption market in the world.

“These figures have aligned more closely with aggressive tariff scenarios, pressing on risk activities,” said Uto Shinohara, senior strategist at Merirow Valiency Management.

It is likely that the increases in the rates affect global supply chains, in particular in sectors such as electronics and cars, where production is distributed in several countries.

Analysts warn that the commercial partners are likely to respond with their countermeasures, increasing the risk of the highest consumers and offer interruptions.

While some investors initially focused on the main rate of 10 %, which was less than expected, the highest specific rates of the country triggered a new anxiety.

“We just took one side of the story, what the United States are doing,” said Walter Todd, that is, of Greenwood Capital. “The other part is like the other countries respond.”

In Asia, the impact could be aggravated by the fact that many of the affected countries are deeply integrated into the global production ecosystem.

The companies that had moved production from China to neighbors such as Vietnam and Bangladesh to avoid previous rates can now find themselves in cross fire.

Tariff policy also weighed energy prices and raw materials. The US benchmark crude oil dropped from $ 2,08 to $ 69.63 per barrel, while Brent’s crude oil went down to $ 72.89.

The announcement of Mr. Trump marks a strong reversal of decades of commercial liberalization that followed the Second World War. Some analysts believe that they could remodel global trade if the duties gather. Others say that the move could be understood as a negotiating tactic, although the uncertainty about future politics is already placing corporate decisions.

“We are in the first inning of what could unfortunately turn into a very serious global commercial war,” said Don Calcagni, that is Mercer Advisors Reuters.