Investing.com-- Asian stock fell on Tuesday mirroring an overnight slump on Wall Street, after U.S. President Donald Trump confirmed that 25% tariffs on Mexico and Canada were set to take effect later in the day, and signed an order to increase levies on Chinese goods.
Major U.S. stock indexes ended sharply lower on Monday after Trump’s announcement.
President Trump on Monday confirmed that 25% tariffs on imports from Mexico and Canada would take effect on March 4 at 5:01 GMT.
He also signed an order increasing tariffs on Chinese goods from 10% to 20%.
The increased tariffs on Chinese goods have further strained relations between the U.S. and China.
China vowed countermeasures against U.S. tariffs to safeguard its interests, while Canada prepared its own retaliation, their governments stated Tuesday.
These tariffs are expected to heighten trade uncertainty, disrupt supply chains, and weaken export demand, hurting economic growth and investor confidence in Asian markets.
Japan’s Nikkei 225 index declined 1.9% on Tuesday, while TOPIX fell 1.3% as of 02:40 GMT.
Hong Kong’s Hang Seng index dropped 1.4% after rebounding in the previous session.
Indonesia’s Jakarta Stock Exchange Composite Index fell 1.1%, while Singapore’s Straits Times Index lost 0.4%.
Futures for Nifty 50 indicated a drop at open.
South Korea’s KOSPI was largely unchanged after returning from a holiday.
Data on Tuesday showed that Australian retail sales increased by 0.3% in January, rebounding from a 0.1% decline in December. This growth was primarily driven by heightened food-related spending, particularly in cafes, restaurants, and takeaway food services
In other news, the Reserve Bank of Australia (RBA) released the minutes from its February meeting, where it had reduced the official cash rate by 0.25 percentage points to 4.10%.
The RBA justified this decision by citing a faster-than-expected decline in inflation rates and slower wage growth. Despite this monetary easing, the central bank expressed caution regarding further policy adjustments, indicating that any additional rate cuts would depend on incoming economic data and risk assessments.
Australia’s S&P/ASX 200 index was trading 0.9% lower.
China’s annual political gatherings, known as the "Two Sessions," are set to commence this week, comprising the Chinese People’s Political Consultative Conference (CPPCC) and the National People’s Congress (NPC).
The CPPCC will begin its session on March 4, 2025, followed by the NPC on March 5, 2025.
These key meetings will set economic growth targets, discuss policy priorities, and address social issues.
The NPC is expected to target around 5% GDP growth amid real estate and trade challenges. Foreign policy, military spending, and tech advancements will also be key topics, making the meetings closely watched globally.