Asian Tech Stocks Decline Amid Trump's Tariff Announcements

Asian tech and chip-related stocks faced a downturn on Tuesday following U.S. President Donald Trump's reaffirmation that tariffs on goods imported from Mexico and Canada would go ahead as scheduled. These tariffs, set at 25%, were highlighted by Trump as a necessary measure, indicating that negotiation options had diminished.

In addition to the North American tariffs, Trump also announced an extra 10% tariff on imports from China, escalating tensions following the 10% duty that was previously imposed in February. These developments caused significant pressure on the Asian tech market.

An additional factor contributing to the decline was the nearly 9% drop in shares of Nvidia, a prominent player in artificial intelligence technology. This decline was part of a wider trend affecting tech stocks across Asia.

Specific companies experienced notable losses: Japanese semiconductor equipment manufacturer Advantest saw its stock plunge by 9%, reaching its lowest point since October of the previous year. Another chip manufacturer, Renesas Electronics, fell by 6.35% as investor sentiment wavered.

In a parallel development, SoftBank Group, a significant player in tech investments, dropped 6.25%. CEO Masayoshi Son reportedly plans to secure $16 billion to invest in artificial intelligence, which aligns with recent market discussions.

South Korea's SK Hynix experienced a decrease of 3.26%, though Samsung Electronics managed to defy the trend with an increase of nearly 1%, attributed to the launch of its Galaxy A series smartphones featuring AI capabilities.

Chinese tech stocks also faced declines; Alibaba's shares decreased by 2.23%, while Kingsoft Cloud dropped by 8.46%. The shopping platform Meituan lost 0.62%, and electric vehicle manufacturer BYD plunged 6.60% as market fears grew. Other notable losses included Xpeng trading down 1.97% and Li Auto down 2.68%.

In contrast, Tencent, a major Chinese tech firm, managed to trade 0.91% higher in Hong Kong, showcasing some resilience amid widespread sector declines.

In Taiwan, shares of Taiwan Semiconductor Manufacturing Company fell more than 2% after Trump acknowledged the company’s planned $100 billion investment in U.S. chip manufacturing, which he labeled a groundbreaking move.

Stocks, Technology, Tariffs