Asian markets deeply in the red, following cues from the Wall Street, where stocks tumbled after President Trump imposed tariffs on China, thereby reigniting fears of a trade war. Gold, yen and bonds have all gained from the flight to safety that ensued.
Nikkei’s export sectors under pressure, unsurprising given yen’s advance and US and China comprising Japan’s largest export markets. Trump administration confirmed countries it will exempt from steel and aluminum tariffs, though Japan not one.
Australia on the exclusion list, though it would still be subject to import quotas and relief is said to be temporary. As expected Chinese equities are on a sell-off.
Trump signed a presidential memorandum on Thursday that could impose tariffs on up to $60 billion of imports from China, although they have a 30-day consultation period, raising the chance that final measures could be watered down.
Investors fear that the U.S. measures could escalate into a trade war, with potentially dire consequences for the global economy.
China published its own list of American goods it is prepared to impose tariffs on. The Chinese Commerce Ministry also said it would take action against US under World Trade Organization framework, while its embassy vowed to ‘fight to the end' in any trade war.
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