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

Asia-Pacific markets plunged on Thursday, after U.S. President Donald Trump imposed hefty reciprocal tariffs on over 180 countries and territories – several of which are in the region. In charts posted on social media, the White House showed the effective tariff rates they claim other countries impose on American goods, including by “currency manipulation and trade barriers.” The White House told CNBC’s Eamon Javers on Wednesday that the new reciprocal rate on China will be added to existing tariffs totaling 20%, meaning the true tariff rate on Beijing under this Trump term is 54%. Meanwhile, goods from India, South Korea and Australia face tariffs of 26%, 25% and 10%, respectively. Chris Kushlis, Chief Emerging Markets Macro Strategist at T. Rowe Price says the fresh tariffs “represent a significant increase in tariffs on Asian exports, and arguably more than anticipated by the market.” The U.S. accounts for approximately 15% of exports from the region, meaning that tariff increases ranging between 20% and 35% “would pose a meaningful headwind to growth this year, especially for the more open trade-oriented economies,” he noted. “Many Asia economies have a relatively high proportion of their export value added that ends up in the US, so the broad application of tariffs globally will hinder effects to redirect trade,” Kushlis added. Japanese markets led losses in Asia. The benchmark Nikkei 225 was down 2.95%, paring losses of over 4% at the open, while the broader Topix index was down 3.30%, also paring losses of over 4%. Hong Kong’s Hang Seng Index fell 1.51% while Mainland China’s CSI 300 was down 0.41% Over in South Korea, the Kospi index fell 1.11%, paring losses from over 3%, while the small-cap Kosdaq was down 0.21%. Australia’s S&P/ASX 200 was down 1.07%. Gold prices hit a record high and were trading at $3,133.57 per ounce as at 10.54 a.m. Singapore time, as investors flocked to the precious metal. U.S. futures cratered as Trump’s sweeping tariffs of at least 10% and even higher for some countries, raised the risks of a global trade war that would adversely affect the already slowing U.S. economy. Overnight stateside, stocks climbed in yet another volatile session. The S&P 500 advanced 0.67% to close at 5,670.97, while the Nasdaq Composite added 0.87% and ended at 17,601.05. The 30-stock Dow Jones Industrial Average added 235.36 points, or 0.56%, and settled at 42,225.32. Shares of Tesla climbed 5.3%, rising on news that President Trump has signaled to his cabinet that Elon Musk will be stepping back