By Asian technology and semiconductor stocks faced significant losses on Tuesday after U.S. President Donald Trump confirmed plans to impose 25% tariffs on goods from Canada and Mexico, with no room for negotiation. Trump also announced an additional 10% hike on existing tariffs on Chinese imports, intensifying global trade tensions.
The announcement rattled investors, leading to sharp declines in key Asian tech companies. Japanese semiconductor equipment maker Advantest fell 9%, 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 gained 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 manufacturers Xpeng, Li Auto, and BYD also saw 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. The tariff hikes have left investors uneasy, with concerns over disrupted supply chains and prolonged market volatility.