Japan’s benchmark Nikkei 225 Stock Average lost 2.36 per cent at the end of the morning session, while Hong Kong’s Hang Seng Index plunged 2.25 per cent.
Speaking to reporters, Mr Trump said the new tariffs could go “beyond 25 per cent,” though he was not currently planning to do so. He stressed the September 1 deadline was fixed and not a negotiating ploy. “Increasing tariffs is definitely not a constructive measure to solve economic and trade friction,” Foreign Minister Wang Yi told reporters on the sidelines of an ASEAN summit in Bangkok on Friday.
“Until such time as there is a deal, we’ll be taxing them,” the president said, adding that he was not concerned by a decline on U.S. markets after his latest tariff announcement.On Thursday, U.S. stocks slipped as news of the new tariffs, which were not widely expected, broke with the S&P 500 index closing down nearly 1 per cent.
The tariff announcement comes just a day after the U.S. Federal Reserve cut interest rates, citing a global slowdown and the uncertainties of the trade war, in particular the tariffs.
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