Asia markets rebound despite tariffs threat on China

Markets across the Asia-Pacific region rebounded when they opened Tuesday, even as President Donald Trump threatened to hit China with additional tariffs that would escalate the tit-for-tat trade war between the world’s two largest economies.

After a day of steep losses not seen since the COVID-19 pandemic, stock markets in Japan, South Korea and Australia all rose on Tuesday morning.

Japan’s Nikkei 225 gained more than 5% when it opened while South Korea’s KOSPI was trading 2.3% higher and Australia’s ASX 200 cautiously moved into positive territory.

The rebounds reflected the neutral end to trading in the United States, where stock markets gyrated wildly Monday before the S&P 500 and the tech-heavy Nasdaq closed largely flat.

Still, analysts said investors were mainly recouping Monday’s losses, and optimism was tempered by Trump’s latest broadside against China.

Trump on Monday threatened to impose an additional 50% tariffs on China if Beijing did not “withdraw” its retaliatory measures on Tuesday, a move that would take duties on Chinese-made goods to at least 104% — and in some cases more.

Leaders across the Asia-Pacific region — though notably not in China — have launched efforts to negotiate with the White House over the tariffs that many analysts fear could tip some nations, and perhaps the globe, into recession.

Trump on Monday signaled he was open to cutting deals with countries around the world to ease tariffs, even as White House officials continued to suggest there would be no quick end to new import duties.

“We’re going to get fair deals and good deals with every country. And if we don’t, we’re going to have nothing to do with them,” Trump said in a joint Oval Office appearance with Israeli Prime Minister Benjamin Netanyahu. “They’re not going to be allowed to participate in the United States.”

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