U.S. President Donald Trump has turned up the heat on America’s biggest trading partners with a slew of tariffs, setting the stage for an all-out trade war that threatens to disrupt Asian economies.
From China to Japan to South Korea, Asia’s business and government leaders are now considering how to respond to a new — and more hostile — trade environment. China, a major target of the Trump administration’s tariff policy, has already retaliated with levies of its own against U.S. goods.
Here is a selection of stories to bring you up to date on the latest developments.
Asia has responded to Trump’s 25% tariffs on all steel and aluminum imports, which took effect Wednesday, in terms ranging from disappointed to defiant to conciliatory. Australia described the new tariffs as “disappointing,” while Beijing has vowed to “take all necessary measures” to protect its interests.
South Korea said it would send an envoy to Washington to discuss the matter “based on trust.” Japan, which sought an exemption, said the situation was “regrettable.” Read more.
The U.S. steel tariffs could push major producers like Japan, South Korea and China to redirect more of their production toward India, further impacting the commodity’s price there. Read more.
After Trump’s latest additional 10% blanket tariff on Chinese goods took effect on March 4, bringing the total extra levy on Chinese exports to the U.S. to 20%, China hit back with new duties on an array of U.S. agricultural products. Then Beijing abruptly announced a plan to also impose tariffs on certain Canadian goods, leading at least one expert to suspect that China wanted to “try and dissuade countries from aligning their trade policy with that of Mr. Trump.” Read more.
Chinese government agencies, including the Ministry of Commerce, summoned Walmart representatives this week after the U.S. retailer urged suppliers in China to offset tariffs with substantial price cuts, according to Beijing’s state media. Read more.
South Korean industry is worried about another 25% tariff on imported cars that Trump said would start in April. Read more.
