Asian shares dip as uncertainty grows about what’s next with Trump’s tariffs

Saturday, 31 May 2025 01:18 - - {{hitsCtrl.values.hits}}

Asian shares were mostly lower on Friday as uncertainty grew about what will happen next after a US court blocked many of President Donald Trump’s sweeping tariffs.

Japan’s benchmark Nikkei 225 lost 1.4% in morning trading to 37,892.39. Government data showed Tokyo core inflation, excluding fresh food, accelerating to a higher-than-expected 3.6% in May. Some analysts say that makes it more likely the Bank of Japan will raise interest rates.

Australia’s S&P/ASX 200 was little changed, inching down less than 0.1% to 8,404.50. South Korea’s Kospi declined 0.6% to 2,703.64, ahead of a presidential election set for next week.

Hong Kong’s Hang Seng slipped 1.4% to 23,235.94, while the Shanghai Composite shed 0.3% to 3,353.07.

On Wall Street, the S&P 500 rose 0.4% on Thursday after giving up more than half of an early gain. The Dow Jones Industrial Average added 117 points, or 0.3%, and the Nasdaq composite rose 0.4%.

It’s a downshift after stocks initially leaped nearly 2% in Tokyo and Seoul, where markets had the first chance to react to the ruling late Wednesday by the US Court of International Trade. The court said that the 1977 International Emergency Economic Powers Act that Trump cited for ordering massive increases in taxes on imports from around the world does not authorise the use of tariffs.

The ruling at first raised hopes in financial markets that a hamstrung Trump would not be able to drive the economy into a recession with his tariffs, which had threatened to grind down on global trade and raise prices for consumers already sick of high inflation.

But the tariffs remain in place for now while the White House appeals the ruling, and the ultimate outcome is still uncertain. The court’s ruling also affects only some of Trump’s tariffs, not those on foreign steel, aluminium and autos, which were invoked under a different law.

Discover Kapruka, the leading online shopping platform in Sri Lanka, where you can conveniently send Gifts and Flowers to your loved ones for any event including Valentine ’s Day. Explore a wide range of popular Shopping Categories on Kapruka, including Toys, Groceries, Electronics, Birthday Cakes, Fruits, Chocolates, Flower Bouquets, Clothing, Watches, Lingerie, Gift Sets and Jewellery. Also if you’re interested in selling with Kapruka, Partner Central by Kapruka is the best solution to start with. Moreover, through Kapruka Global Shop, you can also enjoy the convenience of purchasing products from renowned platforms like Amazon and eBay and have them delivered to Sri Lanka.