Asian shares slid on Friday after U.S. President Donald Trump unveiled plans to impose new tariffs, including 100% import taxes on pharmaceutical drugs starting October 1.
Trump said on his social media platform Thursday that foreign manufacturers of furniture and cabinetry were “flooding” the U.S. market, warranting tariffs for “national security and other reasons.” He also targeted heavy trucks and parts, though most are produced domestically or in North America.
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The announcement rattled markets. Japan’s Nikkei 225 slipped 0.3% to 45,629.79, with Sumitomo Pharma down 5.2% and Chugai Pharmaceutical off 3.9%. South Korea’s Kospi tumbled 2.5% to 3,384.58, its third straight loss amid tariff worries. Hong Kong’s Hang Seng shed 0.7% and Shanghai’s Composite eased 0.1%. India’s Sensex fell 0.7% and Taiwan’s Taiex dropped 1.5%. Australia’s S&P/ASX 200, however, rose 0.2%.
Wall Street also retreated Thursday, marking a third consecutive loss. Analysts warned that stronger U.S. economic data could limit prospects for multiple Federal Reserve rate cuts, a key driver of this year’s global stock rally.
Oil prices edged higher, while the dollar slipped slightly against the yen.
Source: Agency