Stock markets across Asia tumbled Monday after U.S. President Donald Trump announced a new round of tariff hikes on Chinese imports, sparking renewed fears of a deepening U.S.–China trade war.
The move triggered sharp sell-offs in major financial hubs including Hong Kong, Tokyo, Shanghai, and Seoul, amid concerns over its ripple effects on global growth.
The Trump administration unveiled the tariff increase late Sunday, targeting an additional $50 billion worth of Chinese goods, citing what it called “persistent and unfair trade practices.” In response, Beijing issued a forceful rejection, labeling the accusations as “baseless” and warning of retaliatory measures.
Market Reaction
Analysts said the renewed tensions threaten to unravel progress made in previous trade negotiations and could hurt investor confidence in an already fragile post-pandemic recovery.
“This is a major blow to market sentiment,” said Ayako Sera, a market strategist at Sumitomo Mitsui Trust Bank in Tokyo. “Investors had hoped for de-escalation, not another round of tit-for-tat measures.”
Economic Fallout
Economists warn that further deterioration in U.S.–China relations could disrupt global supply chains, slow export-driven economies across Asia, and increase inflationary pressure through higher import costs.
China’s Ministry of Commerce has not yet detailed any countermeasures, but said it “reserves the right to respond appropriately,” raising the possibility of reciprocal tariffs or restrictions on U.S. firms operating in China.
The developments come at a time when both nations are facing economic headwinds — with the U.S. battling inflation and China working to stabilize its property market and industrial output.
What’s Next?
Investors are bracing for heightened volatility in the coming days, as the trade dispute once again becomes a central issue in global economic outlooks. All eyes are now on whether Beijing will announce retaliatory tariffs and how other regional economies might be drawn into the escalating conflict.
Global tensions are rising as China’s curbs on critical mineral exports threaten to derail supply chains for automakers, defense firms, and tech giants around the world.
Mexico plans to formally request an exemption from the United States’ doubled steel tariffs, Economy Minister Marcelo Ebrard said, criticizing the move as unjust and economically unsound.
Smoke from intense wildfires burning across Canada has spread thick haze over parts of the US Midwest, causing “very unhealthy” air quality in Minnesota, Wisconsin, and Michigan on Tuesday.
Meta is turning to nuclear power to meet its rising energy needs for artificial intelligence and computing.
Bill Gates says nearly all of his wealth will go toward improving health and education across Africa over the next 20 years.
Global tensions are rising as China’s curbs on critical mineral exports threaten to derail supply chains for automakers, defense firms, and tech giants around the world.
Mexico plans to formally request an exemption from the United States’ doubled steel tariffs, Economy Minister Marcelo Ebrard said, criticizing the move as unjust and economically unsound.
Smoke from intense wildfires burning across Canada has spread thick haze over parts of the US Midwest, causing “very unhealthy” air quality in Minnesota, Wisconsin, and Michigan on Tuesday.
Meta is turning to nuclear power to meet its rising energy needs for artificial intelligence and computing.
Bill Gates says nearly all of his wealth will go toward improving health and education across Africa over the next 20 years.
On May 28, the inauguration ceremony of Lachin International Airport was held.
Taxi drivers across France are protesting government plans to cut payments for driving patients to medical appointments. These cuts are part of a broader effort by Prime Minister François Bayrou to save €40 billion in the 2026 budget and reduce the country’s large deficit.
Brazil’s economy is expected to have regained momentum in the first quarter of 2025, driven by a surge in household spending and private investment, according to a Reuters poll of economists conducted from May 21–26.
As peace talks progress, voices from Yerevan, Tbilisi, and Baku reveal hopes, concerns, and expectations for a future shaped by trade, trust, and generational change in the South Caucasus.
In a major blow to one of President Donald Trump’s key economic policies, a US federal court has blocked the administration’s sweeping global tariff regime, ruling that the White House overstepped its constitutional authority.
Japan has not received a request from Washington for its best trade proposals, despite a White House statement suggesting such letters were sent ahead of a Wednesday deadline.
Global tensions are rising as China’s curbs on critical mineral exports threaten to derail supply chains for automakers, defense firms, and tech giants around the world.
Mexico plans to formally request an exemption from the United States’ doubled steel tariffs, Economy Minister Marcelo Ebrard said, criticizing the move as unjust and economically unsound.
Smoke from intense wildfires burning across Canada has spread thick haze over parts of the US Midwest, causing “very unhealthy” air quality in Minnesota, Wisconsin, and Michigan on Tuesday.
Bill Gates says nearly all of his wealth will go toward improving health and education across Africa over the next 20 years.
Global tensions are rising as China’s curbs on critical mineral exports threaten to derail supply chains for automakers, defense firms, and tech giants around the world.
Mexico plans to formally request an exemption from the United States’ doubled steel tariffs, Economy Minister Marcelo Ebrard said, criticizing the move as unjust and economically unsound.
Smoke from intense wildfires burning across Canada has spread thick haze over parts of the US Midwest, causing “very unhealthy” air quality in Minnesota, Wisconsin, and Michigan on Tuesday.
Meta is turning to nuclear power to meet its rising energy needs for artificial intelligence and computing.
Bill Gates says nearly all of his wealth will go toward improving health and education across Africa over the next 20 years.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment