Asia-Pacific Markets Tumble After U.S. President's 'All Countries' Tariff

The U.S. president informed reporters that he anticipated imposing tariffs on “all countries” by Wednesday and rejected claims that the first round of new U.S. tariffs would focus on a limited group of nations.

Asian markets, especially those of U.S. allies, fell sharply at the beginning of Monday's trading session. Taiwan's Taiex index fell by 4.2%, making it the weakest performer among key Asia-Pacific market indices. Following closely was Japan’s Nikkei 225, which dropped 4.1%. South Korea’s KOSPI fell by 3.0%, while Australia’s S&P/ASX 200 finished the day down by 1.7%.

East Asian economies face significant risks from Trump tariffs because of their dependence on manufacturing driven by exports. Japan, South Korea, and Vietnam all maintain significant trade surpluses with the U.S., positioning them as probable targets if Washington opts to address trade discrepancies.

TSMC, the largest contract chip manufacturer globally and Asia's most valuable firm, saw a decline of 4.4%. Taiwanese companies Foxconn and Quanta Computer decreased by 5.2% and 6.9% respectively.

Japanese car manufacturers faced further declines on Monday after Trump's declaration of a 25% flat tax on car imports. Nissan decreased by 4.0%, whereas Toyota declined by 3.1%. The South Korean automobile manufacturer Hyundai experienced a decline of 3.8%.

Chinese markets fared somewhat better, although they remained negative. The Hang Seng Index, a key benchmark for Hong Kong, decreased by 1.0%, and the CSI 300, which follows mainland China firms listed in Shanghai and Shenzhen, fell by 0.7%.