Global Markets Roiled by Trump Tariffs
Early indications of the global fallout from President Trump’s decision to impose tariffs on Mexico, Canada and China came on Monday, as stock markets in Asia and Europe dropped. In the United States, shares were poised to open lower.
Japan’s Nikkei 225 index and South Korea’s Kospi each fell more than 2.5 percent. The Taiwan Stock Exchange weighted index slumped 3.5 percent. Markets in mainland China were closed on Monday for the Lunar New Year holiday. Stocks in Hong Kong, where many Chinese companies trade, dipped slightly.
Europe’s stock indexes also fell. The Euro Stoxx 50, made up of the region’s largest companies, dropped 1.9 percent and the FTSE 100 in Britain declined 1.5 percent. In the United States, S&P 500 futures slid 1.5 percent.
As investors begin to assess the potential fallout from what could be the start of a disruptive trade war, big exporting countries in Asia and Europe are likely to be particularly affected. Companies are exposed to the tariffs because they have made sizable investments in North America under agreements meant to ease trade.
Some of the biggest share-price declines on Monday were among auto manufacturers, which have poured billions into supply chains in Canada and Mexico that could be hit by new taxes. Japan’s Toyota Motor and Nissan Motor fell about 5 percent in trading on Monday, while Honda Motor slumped nearly 7 percent. Shares in Stellantis, Volkswagen and the truck maker Daimler fell about 6 percent and BMW about 4 percent.
The semiconductor giant Taiwan Semiconductor Manufacturing Company fell more than 5 percent in trading on Monday. Mr. Trump had said on Saturday that he expected tariffs would be placed on chips as well as oil and gas later this month. Shares of the British