The shares in Asia fell on Monday, when investors prepared for a week of turmoil in the market caused by the expected announcement of more customs tariffs by President Trump on the largest commercial partners in America.
Since he took office a little more than two months ago, Mr. Trump has kept investors and companies to guess with a random definition of what he calls a trade policy “America first”. He threatened and imposed, and in some cases, he stopped starting the new customs tariffs on the goods coming to the United States
On Monday, the shares in Japan and Taiwan decreased more than 4 percent, while stock prices in South Korea decreased by 3 percent. Technology companies were severely beaten: Semiconductor manufacturers recorded in Taiwan, SK Hynix, Samsung and Tokyo Electron.
The losses in China were more complete. Hong Kong shares fell more than 1 percent and those in China on the mainland were 0.5 percent lower. Chinese markets have generally achieved better than others in Asia this year because of the enthusiasm over the country’s technology companies. On Monday, the shares of the mainland received some support from a report indicating that the China -led industrial sector in China continues to expand despite the initial definitions of Mr. Trump.
Futures on the S&P 500 index, which allow investors to exchange the standard index before reopening the stock exchanges in New York in the morning, declined. On Friday, the S&P 500 index decreased by 2 percent of fears that Mr. Trump’s tariff could recharge inflation and retract the consumer feeling.
Mr. Trump imposed a tariff to make imports more expensive in industries such as cars, on the pretext that commercial barriers will stimulate investment and innovation in the United States. He also used customs tariffs, and threatened them, in an attempt to extract geopolitical concessions from countries. Investors have disturbed that he is not interested in the repercussions of his actions on American markets or consumers, who will have to pay more for many goods if import prices increase.
During the weekend, Mr. Trump escalated the pressure, threatened the so -called secondary sanctions on Russia if it was not involved in talks to a ceasefire in Ukraine. Tactics reflects similar penalties regarding Venezuela. Last week, any country buying Venezuelan oil may face another 25 percent tariff for its imports to the United States.
Threats during the weekend add to the 25 percent customs tariffs to imported cars and some auto parts that will be implemented this week, with the exception of any delay at the last minute. This is in addition to the previously late definitions of Mexico and Canada, in addition to the possibility of making more revenge tariffs on other countries.
In addition to the concern of investors is the scheduled version of the monthly report on the health of the American job market. It can provide another reading of how the Trump administration’s political endeavors are affected by the economy.
Keith Bradcher The reports contributed.