Asian stock markets in shock after Donald Trump's administration called Chinese workers "peasants" and imposed a 104% tariff on all imports from Beijing, bTV reported.
Donald Trump's full list of "reciprocal" tariffs has now taken effect, sending Asian markets tumbling on Wednesday as even the US's closest allies in the region were hit with hefty new tariffs.
Vice President J.D. Vance made the offensive remark "peasants" in an interview with Fox News last week, in which he complained that America was “borrowing money from Chinese farmers to buy the things that these Chinese farmers produce“.
A Chinese government spokesman said it was “surprising and sad to hear the vice president say such ignorant and impolite words“. The escalating trade war between the world's two largest economies has rattled global markets, sparking sell-offs and shaking investor confidence.
U.S. consumers are likely to be among the hardest hit, with companies expected to pass on any new import tariffs to their customers. Chinese e-commerce giants Shein and Temu are facing a major blow after the U.S. raised tariffs on cheap imports from China and Hong Kong to 90 percent.
Initially set at 30 percent – or $25 – as of May 2, the tariff rate has now tripled to $75 per package. The White House confirmed that the levy will rise further to $150 on June 1. Asian markets plunged in early morning trading after new U.S. tariffs on Chinese goods went into effect.
Japan's Nikkei 225 plunged more than 4% shortly after the midnight deadline, extending losses from the previous session. South Korea's Kospi also extended its decline, falling more than 1.5% after opening about 1% lower.
Economists have warned that U.S. consumers are likely to face higher prices on everything from sneakers to wine as a result of the trade war. The full impact of Wednesday's tariffs may not be felt for some time, as all goods already in transit as of midnight will be exempt from the new levies as long as they arrive in the U.S. by May 27.