Asian stock markets plunged on Friday after Donald Trump’s surprise threat of tariff hikes on additional Chinese imports.
In early trading, Tokyo’s main index tumbled 2.2% and Hong Kong’s benchmark lost 2%. Markets in Shanghai, Sydney and Seoul also fell.
The US president’s announcement of 10% tariffs on $300 billion of Chinese goods, due to take effect on September 1, surprised investors after the White House said Beijing promised to buy more farm goods.
Trade wars don’t work anyway. And while uncertainty is a great negotiating tactic it plays merry havoc with economies and markets.
Someone really should take Peter Navarro out back and – metaphorically of course – pound some economic sense into him.