HONG KONG: Equities were mostly down in Asia on Monday (Feb 10) after Donald Trump ramped up his trade war by announcing huge tariffs on steel and aluminium imports and warned every country would face “reciprocal” levies.
Another week got off to an uncertain start following losses on Wall Street that came in reaction to data showing US consumers increasingly worried about inflation and news that far fewer jobs than expected were created last month.
The US president has resumed his hardball tactics on trade since returning to the White House by last week hitting China with a fresh batch of tariffs, having reached a deal to delay measures against Canada and Mexico.
The moves have fanned concerns about the global economy and jolted a recent rally in markets.
Trump said Sunday that 25 per cent duties would be imposed on “any steel coming into the United States”, adding this will also affect aluminium.
He also said he would announce “reciprocal tariffs” to match his government’s levies to the rates charged by other countries on US products.
“Every country will be reciprocal,” he warned, adding that he would provide details on Tuesday or Wednesday.
Guo Jiakun, spokesman of China’s Ministry of Foreign Affairs, reiterated Beijing’s line Monday that “there is no winner in a trade war”, while French foreign minister Jean-Noel Barrot said the European Union will counter in kind to “replicate” any tariffs imposed on it by Washington.
The news weighed on commodity-linked currencies, with the Canadian dollar, Mexican peso and South Korean won all weaker.
Canada is the largest source of steel and aluminium imports to the United States, according to US trade data. Brazil, Mexico and South Korea are also major steel providers to the country.
At a meeting with Prime Minister Shigeru Ishiba in Washington on Friday, Trump threatened to target Japanese goods if the US trade deficit with the country is not equalised.
Equities struggled, with Sydney, Seoul, Manila, Bangkok, Mumbai, Jakarta, Wellington and Taipei all lower.
