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Stocks in Asia tumbled Monday as investors braced for a week of market tumult caused by an expected announcement of more tariffs by President Trump on America’s biggest trading partners.
Japan’s Nikkei 225 index fell nearly 4 percent in early trading. Stocks in South Korea and Taiwan were down more than 2 percent. Stocks in Hong Kong and mainland China were mostly unchanged, bolstered by a report signaling that China’s export-led industrial sector continues to expand despite Mr. Trump’s initial tariffs.
Futures on the S&P 500, which allow investors to trade the benchmark index before exchanges reopen in New York in the morning, slumped 0.5 percent on Sunday evening. On Friday, the S&P 500 dropped 2 percent on concerns about inflation and weak consumer sentiment.
Over the weekend, Mr. Trump ramped up the pressure, threatening so-called secondary sanctions on Russia if it does not engage in talks to bring about a cessation of fighting in Ukraine. The tactic echoes similar sanctions concerning Venezuela. He said last week that any country buying Venezuelan oil could face another 25 percent tariff on its imports to the United States.
The threats over the weekend add to tariffs of 25 percent on imported cars and some car parts set to be implemented this week, barring any last minute reprieve. That’s in addition to previously delayed tariffs on Mexico and Canada, as well as the potential for further retaliatory tariffs on other countries.
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© 2015 Mutual Fund Observer. All rights reserved.
© 2015 Mutual Fund Observer. All rights reserved. Powered by Vanilla
Comments
american unreliability in both trade and security forces new trade alliances (japan, SK, china) that may counter trump tariffs as a group :
"...ongoing ‘global war on trade’ (GWOT), an acronym bearing a remarkable similarity to the notorious ‘Global War on Terror’ (GWOT), is not merely a policy. For countries affected by it, including close US allies like Japan, it presents a geopolitical shift."
https://www.asiasentinel.com/p/asia-respond-washington-global-war-trade
this is on top of 1-on-1 negotiations where friendlys already have a brainpower edge (e.g., carney vs trump).
wait, putin too. and the EU. ok, everyone.
Bold added.....
BEIJING, March 31 (Reuters) - China, Japan and South Korea agreed to jointly respond to U.S. tariffs, a social media account affiliated with Chinese state media said on Monday, an assertion Seoul called "somewhat exaggerated", while Tokyo said there was no such discussion.
The state media comments came after the three countries held their first economic dialogue in five years on Sunday, seeking to facilitate regional trade as the Asian export powers brace against U.S. President Donald Trump's tariffs.
Japan and South Korea are seeking to import semiconductor raw materials from China, and China is also interested in purchasing chip products from Japan and South Korea, the account, Yuyuan Tantian, linked to China Central Television, said in a post on Weibo.