Asian stocks fall as Trump’s new tariffs rekindle trade tensions
Asian shares fell on Tuesday after U.S. President Donald Trump stunned markets by imposing new tariffs on products imported from Brazil and Argentina, rekindling fears over global trade tensions.
China’s blue-chip CSI300 index fell as much as 0.62% before clawing back to register small gains. The Shanghai Composite Index was down 0.08% after earlier hitting its lowest point since August 26.
Hong Kong’s Hang Seng Index was 0.2% lower after previously falling as much as 1.44%.
MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.43% as Australian shares recorded their worst day in two months with a 2.2% drop.
However, some Asian indexes rebounded in afternoon trade from session lows.
In Tweets on Monday, Trump said that he would impose tariffs on steel and aluminum imports from Brazil and Argentina, attacking what he saw as both countries’ “massive devaluation of their currencies.”
Contrary to the U.S. President’s remarks, both Brazil and Argentina have been trying to strengthen their respective currencies against the dollar.