Asian stocks declined on Tuesday as U.S. President-elect Donald Trump threatened to impose additional tariffs on goods from China and other countries. Trump claimed that these measures would help cut migrants and illegal drug flows across U.S. borders, adding 10% tariffs on Chinese goods and 25% on products from Mexico and Canada.
Despite Trump's previous positive moves, such as nominating Scott Bessent, a prominent investor, as Treasury Secretary, which was seen as a more moderate voice on trade, the stock indexes faced a weak open in Asian markets. Investors' focus also turned towards the conglomerate Adani Group, following accusations of bribery and fraud against its top executives by U.S. authorities. While increased tariffs may create more economic challenges for China, Beijing is expected to introduce more fiscal stimulus to counter the effects of the tariffs. The upcoming political meetings in December will be closely watched for any further fiscal measures. Despite these measures, the potential for a renewed Sino-U.S. trade war remains a concern, as it could further disrupt global trade and impact China's export dominance as well as other Asian economies
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