Trump Tariffs Render Auto, Mexico-Exposed Stocks Big Asia Losers
- China chipmakers, refiners may fare better than other sectors
- Stocks that are exposed to Mexico may take a hit from tariffs
Japan’s biggest automakers count on North America as a crucial market.
Photographer: Taylor Weidman/BloombergThis article is for subscribers only.
Asian stocks reliant on exports, ranging from Japanese carmakers to Chinese e-commerce firms, nosedived after US President Donald Trump unleashed his first wave of tariffs, signaling the beginning of a new round of global trade war.
On Saturday, Trump ordered general tariffs of 25% on Canada and Mexico and 10% on China to come into effect on Tuesday, as well as promising a similar move later for the European Union. The MSCI Asia Pacific Index fell nearly 3% in Monday trading in its biggest intraday drop in six months.