Trump’s tariff hikes pull Asian shares, US futures sharply lower

BANGKOK (AP) — Asian markets and U.S. futures tumbled Thursday following U.S. President Donald Trump ’s announcement of big increases in tariffs on imports of goods from around the world.

The double-digit tariff hikes sent shivers across world markets, as economists warned it sharply raises the risk of recession.

The future for the S&P 500 dropped 2.9% while that for the Dow Jones Industrial Average lost 2.2%, auguring potential losses when U.S. markets reopen on Thursday.

In Asian trading, Tokyo’s Nikkei 225 index dipped 4% briefly, with automakers and banks taking big hits. Shortly before the market closed it was down 3.4% at 34,498.31.

Mitsubishi UFJ Financial Group’s shares plunged 8.3% as the potential impact of the 24% tariffs on the export-dependent Japanese economy dashed expectations that the central bank will keep raising interest rates. Mizuho Financial Group skidded 9.2%.

Sony Corp.’s stocks sank 5.6% and Toyota Motor Corp. gave up 6.3%.

Japan’s yen gained , with the U.S. dollar falling to 147.04 Japanese yen from 149.28 yen. The euro rose to $1.0949 from $1.0855.

In South Korea, which was hit with a 25% tariff, the benchmark Kospi fell 1.1% to 2,478.49.

Hong Kong’s Hang Seng lost 1.9% to 22,776.00, while the Shanghai Composite index edged less 0.2% lower, to 3,342.39.

The announcement came as a “major shock,” Yeap Junrong of IG said in a commentary. “China, in particular, was hit with an additional 34% tariff, bringing its total tariff burden to 64% when accounting for previous measures.”

However, losses were partly blunted by expectations of further economic stimulus from Beijing to offset the impact of the higher tariffs.

In Australia, the S&P/ASX 200 fell 0.9% to 7,859.70.

Bangkok’s SET shed 1% after Thailand was assigned at 36% tariff on its exports to the U.S. That could cause Thai exports to fall by $7 billion to $8 billion, or about 2.3% of the total, Kasem Prunratanamala of CGS International said in a report.

On Wednesday, U.S. stocks whipped through another dizzying day before Trump’s unveiling of his “Liberation Day” tariffs.

The S&P 500 rose 0.7% to 5,670.97 after careening between an earlier loss of 1.1% and a later gain of 1.1%. It’s had a pattern this week of opening with sharp drops only to finish the day higher.

The Dow industrials added 0.6% to 42,225.32, and the Nasdaq composite climbed 0.9% to 17,601.05.

Financial markets around the world have broadly been shaky lately because of uncertainty about Trump’s trade war. He has said he wants tariffs to make the global system more fair and to bring manufacturing jobs back to the United States from other countries. But tariffs also threaten to grind down growth for the U.S. and other economies, while worsening inflation when it may be stuck above the Federal Reserve’s 2% target.

After the U.S. market closed, Trump declared a 10% baseline tax on imports from all countries and higher tariff rates on dozens of nations that run trade surpluses with the United States. The president held up a chart while speaking at the White House, showing the United States would charge a 34% tax on imports from China, a 20% tax on imports from the European Union, and 32% on Taiwan.

Trump earlier announced 25% tariffs on auto imports; levies against China, Canada and Mexico; and expanded tariffs on steel and aluminum. Trump has also put tariffs against countries that import oil from Venezuela and plans separate import taxes on pharmaceutical drugs, lumber, copper and computer chips.

Treasury yields swung in the bond market, echoing the indecision seen in the stock market.

The yield on the 10-year Treasury fell as low as 4.11% in the morning from 4.17% late Tuesday and from roughly 4.80% early this year. But it later rose to 4.18%. Higher yields can indicate higher expectations for the economy or for inflation.

In other dealings early Thursday, U.S. benchmark crude shed $1.86 to $69.85 per barrel. Brent crude, the international standard, gave up $1.83 to $73.12 per barrel.