Trump’s Tariff Hikes Send Asian Tech Stocks into a Tailspin
Asian technology and semiconductor stocks plunged on Tuesday following U.S. President Donald Trump’s announcement of increased tariffs on imports from Canada, Mexico, and China. Trump confirmed that 25% tariffs on Canadian and Mexican goods would proceed as planned, with no room for negotiation, and added a 10% hike on existing tariffs on Chinese imports.
The announcement triggered a sharp sell-off in Asian markets, with tech and chip stocks leading the decline. Japanese semiconductor equipment manufacturer Advantest fell 9%, hitting its lowest level since late October, while Renesas Electronics dropped 6.35%. SoftBank Group, a major tech investor, slid 6.25% amid reports of its CEO’s $16 billion AI investment plan.
In South Korea, Samsung Electronics rose 1% following the launch of its AI-powered Galaxy A series, but SK Hynix fell 3.26%. Chinese tech firms Alibaba and Kingsoft Cloud dropped 2.23% and 8.46%, respectively. Electric vehicle makers Xpeng, Li Auto, and BYD also faced declines, with BYD plummeting 6.60%.
Taiwan Semiconductor Manufacturing Company (TSMC) fell over 2% despite Trump’s praise for its $100 billion U.S. investment in semiconductor production. The tariff hikes have left investors uneasy, with concerns over disrupted supply chains and prolonged market volatility.
