Asian Markets Fall After New U.S. Trade Tariffs
Asian shares fell on Tuesday after Washington announced new tariffs on Chinese imports, inflaming trade tensions between the world’s two biggest economies. U.S. stock futures took a knock. MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS slipped 0.3 %. Hong Kong's Hang Seng index .HSI off 0.7 percent and Australian stocks were down 0.4 %.
Chinese shares were a touch lower with the blue-chip index .CSI300 off 0.1 % while Japan's Nikkei .N225 bucked the trend, gaining more than 1.5 %.
The sell-off came after U.S. President Donald Trump imposed 10 % tariffs on as additional $200 billion worth of Chinese imports, and warned of duties on more products if China took retaliatory action. Trump spared smart watches from Apple and Fitbit and other consumer products such as bicycle helmets and car seats for babies.
Experts believe, that the announcement dashes hopes of any trade negotiations between two rivals. Markets should be prepared for a prolonged period of risk-off.