Trump’s comments to reporters on Air Force One seemed to dash hopes the levies would be more limited. Trump is due to receive tariff recommendations on Tuesday and announce initial levels on Wednesday, followed by auto tariffs the day after.
Seeking any safe harbour from the trade storm, investors piled into sovereign bonds and the Japanese yen, while lifting gold prices to another all-time high.
“For the first time in years, we find ourselves genuinely worried about risk assets,” said Ajay Rajadhyaksha, head of rates markets at Barclays.
“If policy chaos and trade wars worsen much further, a recession is now a realistic risk across major economies,” he added. “For the first time in many quarters, we favour core fixed income over global equities.”
Japan’s Nikkei led the rout in Asia, sinking 3.6 percent to a six-month low as automaker stocks continued to suffer fallout from Trump’s talk of 25 percent tariffs on imported cars.
The Hang Seng Index in Hong Kong lost 0.94 percent to open at 23, 207 points, while South Korea was down 2.5 percent.
Mainland blue chips dipped 0.3 percent as a survey showed manufacturing activity inched higher in March, much as analysts expected. (Reuters/ Xinhua)
