Investing.com - Asian markets fell in morning trade on Friday after an unexpected tariff announcement from the U.S. on Chinese goods.
China’s Shanghai Composite and the Shenzhen Component fell 1.7% and 1.6% respectively. Hong Kong’s Hang Seng Index plunged 2.3%.
Overnight, U.S. President Donald Trump announced that he would impose a 10% tariff on a further $300 billion in Chinese imports. It will become effective on Sep 1. The new taxes could go “well beyond” 25%, he added.
Prior to the move, a total of $250 billion of China-made products were already subject to a 25% import charge.
“I think they want to try and make a deal with us, but I’m not sure,” Trump said in a Thursday evening rally in Cincinnati. “Until such time that there is a deal, we will be taxing the hell out of China.”
However, the President also said he continue “positive dialogue with China on a comprehensive Trade Deal,” and that he feel the future between the countries “will be a very bright one.”
The Nikkei 225 slumped 2.5%, while the KOSPI was down 0.9%.
Tension between Japan and South Korea escalated on Friday after the former approved a plan to remove South Korea from a so-called “white list” of countries that enjoy trade privileges with Tokyo.
The measure is based on security concerns, Japan’s cabinet said, adding that the removal will take effect on Aug 28.
Down under, Australia’s ASX 200 dropped 0.4%.