Shares fell sharply on Friday the second day in Asia, with futures trading showing that U.S. shares could also fall further soon as worries over the economic impact of President Trump’s widespread tariffs spread.
Japan's Nikkei 225 index fell 3.8%. It fell 2.8% on Thursday, including 24% in Japan's goods, after Trump announced a far-reaching revision of U.S. tariffs.
In South Korea, the KOSPI index fell 0.8% on the previous day and 1.7% on Friday. President Trump's tax on South Korea's imports this week was 26%.
U.S. shares have fallen faster than other markets since Trump’s inauguration, and its underperformance seems to continue on Friday. Futures for the S&P 500 index fell 2.2% on Friday.
The S&P 500 suffered its worst single-day losses since 2020 on Thursday, down 4.8%.
Investors are already on the edge due to the potential damage Mr. Trump’s policies could have on the economy. His announcement on Wednesday included a minimum tax on almost all imports, which led the market as investors to abandon stocks and seek security in government bonds.
Mr. Trump's tariffs took a huge blow in Southeast Asia after re-entered many Chinese parts in the U.S. market, and until now, the U.S. tariffs on goods from China have bypassed. Vietnam's stock market fell again after falling last day.
Mr. Trump announced a 46% tariff on Vietnamese goods on Wednesday, his highest tax rate on any country. Every dollar of American goods imported by Vietnam Last year, it exported nearly $11 in goods to the United States. Many of these exports are made from components imported from China.
Stock markets in Shanghai, Shenzhen, Hong Kong and Taipei were closed on Friday during local holidays.
