Shares stumble after Trump's latest trade threat
People stand in front of an electronic stock board showing Japan's Nikkei index at a securities firm on Jun 12, 2025, in Tokyo. (Photo: AP/Eugene Hoshiko)
HONG KONG: Investors were rattled on Thursday (Jun 12) after Donald Trump said he would impose unilateral tariffs on partners in the next two weeks, reigniting trade war fears soon after reaching a deal with China to dial down tensions between the superpowers.
The mood was also shaded by geopolitical concerns after the US president said personnel were being moved from the Middle East as nuclear talks with Iran faltered and fears of a regional conflict grew.
The equity losses snapped a recent rally fuelled by talks between Beijing and Washington in London that saw them hammer out a framework agreement to move towards a pact to reduce levies.
Investors have been on edge since Trump's "Liberation Day" tariff blitz on Apr 2 that sent shockwaves through stock and bond markets and stoked global recession fears.
Days later, he announced a pause in those measures until Jul 9 to allow for countries to cut deals with the White House, sparking relief rallies that have pushed some markets towards all-time highs.
However, he once again shook confidence by saying on Wednesday that he intended to send letters telling governments what levies Washington would be imposing.
"We're going to be sending letters out in about a week and a half, two weeks, to countries, telling them what the deal is," he told reporters.
"At a certain point, we're just going to send letters out. And I think you understand that, saying this is the deal, you can take it or leave it."
