Japanese markets lead losses in Asia-Pacific after Trump’s tariff announcement

Japanese markets lead losses in Asia-Pacific after Trump’s tariff announcement

Asian-Pacific markets tumbled on Thursday following an announcement by U.S. President Donald Trump, putting into effect hefty reciprocal tariffs on over 180 countries and territories, several of which are within the region.

The White House released charts via social media indicating the effective tariff rates they believe other countries impose on American goods via "currency manipulation and trade barriers."

In a conversation with CNBC’s Eamon Javers on Wednesday, the White House revealed that the new reciprocal rate on China will be added to existing tariffs totaling 20%, making the true tariff rate on Beijing under the Trump administration a staggering 54%.

Furthermore, goods from India, South Korea, and Australia are now subject to tariffs of 26%, 25%, and 10% respectively.

Among Asian markets, Japan suffered the most significant losses. The Nikkei 225, Japan's benchmark index, was down 2.68%, recovering from an initial drop of over 4% at the open. The broader Topix index also experienced a downturn, falling 2.97% after initially dropping over 4%.

Hong Kong’s Hang Seng Index was down by 1.16% in early trade, while Mainland China’s CSI 300 fell by 0.48%.

South Korea's Kospi index also took a hit, dropping 1.29% from an initial fall of over 3%, while the small-cap Kosdaq index was down by 0.61%.

Australia’s S&P/ASX 200 declined by 1.17%.

In the midst of the market chaos, gold prices soared to a record high, trading at $3,153.92 per ounce at 9.53 a.m. Singapore time, as investors sought refuge in the precious metal.

These market shifts highlight the far-reaching impact of the Trump administration's aggressive trade policies, causing widespread concern among investors and economic analysts alike.