U.S. President Donald Trump hinted that 25% tariffs on imports from Mexico and Canada could start as early as February, causing a stir in Asian financial markets. His comments, made on January 21, 2025, led to significant volatility in Asian currencies and stocks. Notably, the Japanese yen weakened past 156 to the dollar at one point during the day. The instability underscored regional concerns about the potential economic fallout from such tariffs.
Asian currencies and stocks experienced a dramatic whipsaw effect following Trump's announcement. Traders reacted swiftly to the possibility of hefty tariffs impacting North American trade partners, a move that could have far-reaching implications for global commerce.
"We're thinking in terms of 25% on Mexico and Canada… I think we'll do it Feb. 1," said Trump.
In addition to his comments, Trump signed executive orders related to these tariffs, further solidifying the likelihood of their implementation. The announcement rippled through financial hubs such as Tokyo, Shanghai, Hong Kong, and Singapore, where investors weighed the potential inflationary effects on the U.S. economy.
The initial statement lacked a specific time but was enough to create unease across Asian markets. As financial analysts digested the news, concerns mounted about how these tariffs might exacerbate inflationary pressures in the United States, complicating the economic landscape further.
This article is a collaborative effort by journalists Lisa Kim, Wataru Suzuki, Echo Wong, and Tsubasa Suruga. It was first published on January 21, 2025, at 11:45 JST and later updated at 18:13 JST. The coverage spanned major cities in Asia to capture the regional impact of these developments.
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