Asian equities dropped after President Donald Trump imposed a 25% tariff on US auto imports, prompting investors to pare bets on riskier investments due to concerns about growth in the world’s largest economy.
Shares of automakers slid. A benchmark of regional shares fell while stocks in Hong Kong gained. Equity-index futures pointed to a steady open for US stocks while contracts for Europe indicated stocks may be under pressure.
The Mexican peso slipped on the tariff announcement along with shares of automakers such as Toyota Motor Corp., General Motors Co. and Ford Motor Co. Trump floated more tariffs on the EU and Canada if they worked against the US.
The quickly shifting stance on US trade sanctions on the nation’s allies and foes alike adds to already heightened market concerns as investors race to assess the impact on global trade and economic growth.
Two months into Trump’s presidency, the mood in the market has turned wary as investors temper their bullish views and the Federal Reserve signals it’s in no rush to adjust its interest-rate policy.
