Wall Street tumbled and so did Asian markets on account of president Trump's tariff declaration on Thursday, according to which the United States would force a 10 percent tariff for aluminum and a 25 percent tariff for steel. The tariffs are going to be applied widely and will not target specific countries. According to Trump’s administration, the tariffs were imposed with the goal of protecting U.S. industry, however, it seemed to have backfired as Wall Street shares and the Dollar fell sharply on concerns of an imminent trade war.
Nikkei of Japan plunged 2.67 percent or 579 points to 21145.47 points. HSI fell 1.54 percent to 30566.06 points. KOSPI of Korea also suffered losses and went down by 1.50 percent to 2390.97. In Japan, futures were headed to a steep fall for Japanese equities during the opening trade. Nikkei futures which are traded in Chicago fell 2.71 percent at 21,135. Osaka’s futures were also down by 2.51 percent closing at 21,180.
The greenback fell on Friday taking a step back from its six week highs following president Trump’s tariff announcement. The dollar index, which tracks the greenback against a basket of other prominent currencies, suffered a 0.4 percent overnight loss dropping from 90.932 – its strongest level since January 19.