The shares in Hong Kong, Japan and South Korea have fallen as the tariffs are preparing to Canada, China and Mexico.
The Asian Stock Exchange has dived for fear of the global trade war, while the United States is preparing to impose trade tariffs.
Indexes withdrew to Hong Kong, Japan and South Korea by about 2 percent as they opened on Monday after US President Donald Trump confirmed that they would impose festive tariffs About Canada, China and Mexico.
The Continental China market was closed to the lunar New Year’s holidays, but its currency, Yuan, fell 0.4 percent to the dollar.
American tariffs, which could enter into force on Tuesday, impose a 25 percent tax on all imports from Canada – except for energy – and Mexico, as well as a 10 -pointed levy on goods from China.
The complete effect is not “fully understood”
Although widely expected, a dramatic trade move that Trump welcomed threatened to some of the world’s largest producers, who will probably have to fight the weakening of demand from the world’s most important economies and the fall of global growth.
Car manufacturers, many of which have operations in Mexico from which they export to the United States were among the most severely affected. Toyota, the world’s best car manufacturer and a smaller rival Nissan fell more than 5 percent. Kia Koreree’s motors, which has a factory in Mexico, overthrew more than 7 percent.
The shares of Taiwanese technological companies with the Mexico factories also fell, and Foxconn reduced 8 percent, reduced the quantum by about 10 percent, and Inventec reduced by 8 percent.
“I do not believe that the market participants have fully understood the scope of potential outburst, especially as the answers of the affected countries take place,” said Tareck Horchani, head of the main broker dealing with Maybank Securities in Singapore.
US markets are unlikely to be spared pain. The US future has fallen more than 2 percent before the market opened on Monday morning. And analysts warned about the probable domestic increase in the price on the goods across the street.
Canada, one of the best American shopping partners, announced your own tariff about the USwith 25 percent of taxes up to $ 155 billion in imports. Mexico also announced that it would implement the tariff retaliation.
Trump, who defends Tariffs as the protection of local affairs and production, admitted on Sunday that he may now feel “a little pain” in the “short -term”. However, in a post on social networks, he said that “everything will be worth the price.”
He also doubled in his promise to impose tariffs to the European Union, for which he blamed enough US products, telling reporters that Tariffs were coming “very quickly”.
A spokesman for the European Commission, together with several officials from different Member States, warned over the weekend that the block would take revenge in case the US introduces tariffs.
