Investing.com – Asian equities slipped in morning trade on Friday after U.S. President Trump said he instructed the United States Trade Representative to consider an additional $100 billion tariffs against China.
"In light of China's unfair retaliation, I have instructed the USTR to consider whether $100 billion of additional tariffs would be appropriate under section 301 and, if so, to identify the products upon which to impose such tariffs," Trump said in a statement, adding that the U.S. is still prepared to have discussions with China.
U.S. Trade Representative Robert Lightizer expressed support following Trump’s comments and called his response “appropriate”.
"President Trump is proposing an appropriate response to China's recent threat of new tariffs. After a detailed investigation, USTR found overwhelming evidence that China's unreasonable actions are harming the U.S. economy," Lighthizer said in a statement.
The news came after China announced on Wednesday that it would introduce tariffs on 106 U.S. products including soybeans, cars and whiskey.
Overnight, the S&P 500 gained 0.7%, the Dow added 1.0% and the Nasdaq jumped 0.5%.
However, the overnight rally on Wall Street failed to translate after Trump proposed more tariffs against China.
Japan’s Nikkei slipped 0.3% by 9:30AM ET (01:30 GMT). The safe-haven yen, which firmed following the latest trade developments, was cited as headwind for local equities. Data showed on Friday that the country’s household spending fell 0.9% in February, the biggest annual decline in nearly a year. Analysts previously forecasted a 0.3% gain. 7-Eleven caught some attention after its owners said he forecasted a $3.9 billion full year profit.
Mainland Chinese and Taiwanese markets remained closed for Qing Ming Festival. Hong Kong’s Hang Seng Index jumped 1.3% at the open.
Elsewhere, the KOSPI was down 0.6% in morning trade. Index heavyweight Samsung Electronics (KS:005930) made headlines after the company announced its first quarter operating profit beat consensus.