Asian tech and semiconductor stocks experienced a sharp decline on Tuesday after U.S. President Donald Trump confirmed the implementation of 25% tariffs on goods from Canada and Mexico, with no room for negotiation. Trump also announced a 10% increase on existing tariffs on Chinese imports, further escalating global trade tensions.
The news triggered a sell-off across Asian markets, with Japanese semiconductor equipment maker Advantest plunging 9% and Renesas Electronics dropping 6.35%. SoftBank Group, a major tech investor, fell 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. Investors remain cautious as the tariff hikes threaten to disrupt global supply chains and prolong market uncertainty.
