Asian stock markets were trading lower on Tuesday after US President Donald Trump said that he will reinstate tariffs on US steel and aluminium imports from Brazil and Argentina.
US President Donald Trump said in a tweet on Monday that, “Brazil and Argentina have been presiding over a massive devaluation of their currencies. which is not good for our farmers. Therefore, effective immediately, I will restore the Tariffs on all Steel & Aluminum that is shipped into the US from those countries.”
Reacting to this, the Nikkei 225, Hong Kong’s Hang Seng, South Korea’s Kospi and Topix were down ~1% each. Mainland shares Chinese shares also slipped, with the Shanghai Composite fell 0.54% with the Shenzhen component declining 0.49%.
Meanwhile, US indices closed in the negative territory on Monday, with the Dow Jones Industrial Average falling 187.67 points to 27,864, the S&P 500 losing 0.62% at 3,121.58 and the Nasdaq Composite dropping 82.29 points at 8,583. As per the Institute for Supply Management (ISM) reports showed that US manufacturing activity contracted in November for the fourth consecutive month, fueling worries that the longest period of economic expansion in US history could be growing short-winded.
Further, oil rose as traders sifted for fresh signals on whether OPEC and allied crude producers will tighten supplies when they meet later this week.