MOSCOW, April 7 (Sputnik) – Commenting on the stock market’s reaction to his tariffs, U.S. President Trump said he does not want something to fall, but sometimes it is necessary to “take medicine” to correct the situation.
Affected by the US tariff increase, the Shanghai Composite Index opened down 148.91 points, or 4.46%, at 3,193.1 points on April 7. The Hong Kong Hang Seng Index opened down 2,119.76 points, or 9.28%, at 20,730.05 points on April 7. In addition, the Nikkei index plummeted by more than 8% in the first 10 minutes of trading, falling by more than 2,500 points and falling below the 31,000 mark. The Korean Composite Stock Price Index fell by more than 4% at the opening.
According to 21st Century Business Herald, other Asian stock markets also generally fell. As of midday, Australia’s S&P/ASX 200 index fell 4.33%, and the New Zealand 50 index fell 3.53%. Southeast Asian stock markets also closed down across the board, with Malaysia’s Kuala Lumpur Composite Index down 4.33%, the FTSE Singapore Straits Index down nearly 8%, and the Philippines’ Manila Index down 3.96%.
“I don’t want things to go down, but sometimes you have to take medicine to solve a problem,” Trump told reporters, according to Reuters.
Trump said on April 2 that a 10% base tariff would be imposed on all imported goods . Individual tariffs were set for individual countries. Among them, a 34% tariff would be imposed on goods imported from China. U.S. Treasury Secretary Scott Bessant said that the new tariffs on goods imported from China, plus the previous tariffs, have brought the total tax rate to 54%.
China’s State Council Tariff Commission said it would impose additional tariffs on all imported goods originating from the United States in response to U.S. President Trump’s tariff policy. The department made it clear that these tariffs are imposed on top of the current applicable tariff rates.
In 2024, the total trade in goods between China and the United States reached $688.28 billion. Of this, the United States exported $163.62 billion to China – almost two-thirds less than China’s exports to the United States. China imports agricultural products, microchips, machinery and equipment, hydrocarbons and metals from the United States. The United States buys smartphones, computers, lithium batteries, plastic products, household appliances, shoes, children’s toys, etc. from China.
