Asian stock markets faced heavy selling pressure on Monday opening session after US President Donald Trump announced new tariffs on multiple countries.
This comes after US President Donald Trump announced a 25 per cent tariff on imports from Canada and Mexico, as well as a 10 per cent tariff on goods from China, citing concerns over illegal immigration and the smuggling of drugs, including fentanyl.
Prime Minister Justin Trudeau responded on Sunday to the United States' decision to impose a 25 per cent tariff on most Canadian goods, stating that 'Canadians did not want this, but are prepared.'
The US President has taken action under the International Emergency Economic Powers Act (IEEPA), emphasizing the need to protect Americans and fulfil a campaign promise.
The White House confirmed on Friday that President Donald Trump will be slapping aggressive tariffs this weekend on major US trading partners including Canada, China and Mexico.
The report highlighted that this tariff war could lead to slower growth and potential trade tensions. It noted that these tariffs may cause a notable decline in the real GDP of the US, especially if trading partners retaliate.
"I will immediately begin the overhaul of our trade system to protect American workers and families, instead of taxing our citizens we will tariff and tax foreign countries to enrich our citizens. For this purpose, we are establishing the External Revenue Service to collect all tariffs, d
Trade restrictions planned by the incoming US President Donald Trump could lead to aggressive exports by China to other Asian markets, including India, according to a report by Crisil.