Asian equities fluctuated as President Donald Trump’s tariffs on Canada, Mexico and China went into effect.
Asian shares pared losses after sinking to the lowest level in a month. Trump also signed an order doubling a levy on China to 20%.
Oil dropped to the weakest level in three months and a gauge of the largest 100 digital tokens tumbled.
Canada announced a sweeping package of levies in response and China retaliated by imposing tariffs on US soybeans and other farm products.
Investors are seeking safer havens as they become wary about rising geopolitical tensions and the prospect of tit-for-tat tariffs worsening the global trade spat.
“Markets were hoping there was potential for more wiggle room, more negotiation or the possibility of an extension but those hopes have been dashed,” said Prashant Newnaha, a senior rates strategist at TD Securities in Singapore.
“For markets, the concern is tariffs are coming into play just as cracks are showing in US growth.”
