A new wave of tariffs due this week will see steep levies of 25 per cent on steel and aluminium imports.
Uncertainty over Trump’s tariffs and threats have left US financial markets in turmoil and consumers unsure of what the year might bring.
Fears about the future battered Wall Street, where the Nasdaq tanked 4 per cent owing to another plunge in high-flying tech titans including Apple, Amazon and Tesla.
And Asia followed suit, with losses across the board.
Tokyo was among the main losers after Japanese Trade Minister Yoji Muto said he had failed to win an immediate exemption from US tariffs.
Hong Kong and Shanghai extended Monday’s selling that was stoked by a big miss on Chinese consumer prices that added to worries about the Chinese economy.
Sydney, Singapore, Seoul, Taipei, Wellington and Manila were also deep in negative territory.
“Economic uncertainty and recession fears have intensified, partly driven by President Trump’s weekend comments about the economy being in ‘a period of transition’ and his reluctance to rule out a recession,” said Shaun Murison, senior market analyst at IG online trading platform.
“This uncertainty has heightened investor anxiety. Trump’s trade policies, including ongoing tariff discussions are creating uncertainty and fears of economic slowdown.
“These tariffs could potentially elevate prices and complicate efforts to reduce interest rates.”
