Market Reaction to US Tariff Announcement

Following the announcement by United States President Donald Trump of an additional 10% tariff on Chinese imports, set to take effect on March 4, major stock exchanges across the Asia-Pacific region experienced significant declines. The move has sparked concerns over escalating trade tensions between the two economic powerhouses.

China's Response

In response to the announcement, Beijing has vowed to take "all necessary countermeasures" against the United States' decision. This statement underscores the potential for a tit-for-tat escalation in the ongoing trade dispute, which could have far-reaching implications for global markets.

Impact on Asian Markets

The immediate impact was felt across the region, with the Shanghai Composite dropping by 1.68%, the Shenzhen Composite by 2.65%, and Hong Kong's Hang Seng by a significant 3.29%. South Korea's Kospi Composite also saw a decline of 3.24%. By the closing bell, Australia's S&P/ASX 200 and Japan's Nikkei 225 had fallen by 1.16% and 2.92% respectively. Meanwhile, the dollar strengthened slightly against the yen, trading 0.20% higher.