Asian markets plunge as Trump threatens to hike China tariffs
Hong Kong: President Donald Trump sent Asian markets plunging Monday after threatening to hike tariffs on USD 200 billion of Chinese goods at the end of the week in a bid to speed up stuttering trade talks between the economic superpowers.
Shanghai and Hong Kong equities led big losses across the region, with the Chinese yuan also taking a battering after the president threw a spanner into the high-level negotiations, which many observers were expecting to wrap up imminently.
"For 10 months, China has been paying Tariffs to the USA of 25 per cent on 50 Billion Dollars of High Tech, and 10 per cent on 200 Billion Dollars of other goods," Trump tweeted Sunday night. "The 10 per cent will go up to 25 per cent on Friday."
The warning will throw a shadow over the next round of talks, with a delegation from Beijing due in Washington this week, with Bloomberg News reporting the Chinese side are considering their position. The two sides have imposed tariffs on USD 360 billion in two-way trade since last year.
But Trump and his Chinese counterpart Xi Jinping agreed a truce in December, helping fan a surge across world stock markets for the past four months.
"Trump has taken the proverbial sledgehammer to the walnut this morning and the only two words likely to be on the minds of traders and investors this week are 'trade talks'," said OANDA senior market analyst Jeffrey Halley.
In early trade Hong Kong tumbled 2.5 per cent and Shanghai was off more than three percent, with Singapore off 2.8 per cent, Taipei 1.5 per cent off, while Sydney and Wellington were each one per cent down.
Manila and Jakarta were also sharply lower. Tokyo and Seoul were closed for holidays.
"It's making the outcomes more binary, with everybody focused on the Friday deadline," said Joyce Chang, chair of global research at JPMorgan Chase & Co.
"There doesn't seem to be much leeway now to much go past that. It's going to mean that investors will be very focused on the trade issues even beyond China," she told Bloomberg TV.
The yuan also took a hiding, shedding more than 1.3 per cent at one point against the dollar, its heaviest fall in more than three years. The currency had been sitting around 10-month highs on the back of optimism the two sides would sign off on a trade pact.
"Investors will remain bearish on the yuan, as they reprice in trade war risks because the new developments are a reversal of previous positive progress," Ken Cheung, senior foreign-exchange strategist at Mizuho Bank.
"The news was unexpected." However, while trading floors are awash with red, Stephen Innes at SPI Asset Management remained positive.
"We do know the president tends to retreat from more aggressive displays, so I am viewing this thinly veiled threat as political posturing or a tactical decision to apply more pressure on China to put through a trade deal that aligns with the best USA economic interest at heart.
"Despite US-China trade talks hitting an apparent impasse based on (the) tweet, I think a deal will be signed shortly."
Trump's outburst overshadowed another blockbuster US jobs report Friday that reinforced the view that the economy is in rude health, while measured wage inflation eased pressure on the Federal Reserve to hike interest rates.
For 10 months, China has been paying Tariffs to the USA of 25% on 50 Billion Dollars of High Tech, and 10% on 200 Billion Dollars of other goods. These payments are partially responsible for our great economic results. The 10% will go up to 25% on Friday. 325 Billions Dollars....
— Donald J. Trump (@realDonaldTrump) May 5, 2019 ">
For 10 months, China has been paying Tariffs to the USA of 25% on 50 Billion Dollars of High Tech, and 10% on 200 Billion Dollars of other goods. These payments are partially responsible for our great economic results. The 10% will go up to 25% on Friday. 325 Billions Dollars....
— Donald J. Trump (@realDonaldTrump) May 5, 2019
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US pauses visa processing for individuals from 75 countries
New York/Washington (PTI): The Trump administration on Wednesday announced pausing immigrant visa processing for individuals from 75 countries, including Pakistan, Bangladesh, Nepal and Russia, as part of increasing crackdown on foreigners likely to rely on public benefits in the US.
“The State Department will pause immigrant visa processing from 75 countries whose migrants take welfare from the American people at unacceptable rates. The freeze will remain active until the US can ensure that new immigrants will not extract wealth from the American people,” the State Department said in a post on X.
“The Trump administration will PAUSE immigrant visa processing from 75 countries until the US can ensure that incoming immigrants will not become a public charge or extract wealth from American taxpayers. AMERICA FIRST,” the White House said in a post on X.
“The freeze will remain active until the US can ensure that new immigrants will not extract wealth from the American people. The pause impacts dozens of countries – including Somalia, Haiti, Iran, and Eritrea – whose immigrants often become public charges on the United States upon arrival. We are working to ensure the generosity of the American people will no longer be abused," the State Department said.
"The Trump Administration will always put America First," the State Department added.
State Department spokesperson Tommy Piggott said in a statement, "The State Department will use its long-standing authority to deem ineligible potential immigrants who would become a public charge on the United States and exploit the generosity of the American people."
A report in the Fox News said that the pause will begin from January 21.
The State Department memo, seen first by Fox News Digital, directs “consular officers to refuse visas under existing law while the department reassesses screening and vetting procedures”.
The list of countries include Afghanistan, Albania, Algeria, Antigua and Barbuda, Armenia, Azerbaijan, Bahamas, Bangladesh, Barbados, Belarus, Belize, Bhutan, Bosnia, Brazil, Burma, Cambodia, Cameroon, Cape Verde, Colombia, Cote d’Ivoire, Cuba, Democratic Republic of the Congo, Dominica, Egypt, Eritrea, Ethiopia, Fiji, Gambia, Georgia, Ghana, Grenada, Guatemala, Guinea, Haiti, Iran, Iraq, Jamaica, Jordan, Kazakhstan, Kosovo, Kuwait, Kyrgyzstan, Laos, Lebanon, Liberia, Libya, Macedonia, Moldova, Mongolia, Montenegro, Morocco, Nepal, Nicaragua, Nigeria, Pakistan, Republic of the Congo, Russia, Rwanda, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Senegal, Sierra Leone, Somalia, South Sudan, Sudan, Syria, Tanzania, Thailand, Togo, Tunisia, Uganda, Uruguay, Uzbekistan and Yemen.
The Fox News report added that in November 2025, a State Department cable sent to missions around the globe instructed consular officers to “enforce sweeping new screening rules under the so-called "public charge" provision of immigration law.
The guidance had instructed US consular officers across the world to deem those individuals seeking to enter and live in the US ineligible if they have certain medical conditions, including cardiovascular diseases and diabetes, saying these people could end up relying on public benefits.
The foreigners applying for visas to live in the US “might be rejected if they have certain medical conditions”. “You must consider an applicant’s health…Certain medical conditions – including, but not limited to, cardiovascular diseases, respiratory diseases, cancers, diabetes, metabolic diseases, neurological diseases, and mental health conditions – can require hundreds of thousands of dollars’ worth of care,” the cable had said.
The cable also advised visa officers to consider conditions like obesity in making their decisions, noting that the condition can cause asthma, sleep apnea, and high blood pressure.
The guidance directed "visa officers to deem applicants ineligible to enter the US for several new reasons, including age or the likelihood they might rely on public benefits.
The guidance says that such people could become a “public charge” — "a potential drain on US resources — because of their health issues or age”.
The report added that older or overweight applicants could be denied, along with those who had any past use of government cash assistance or institutionalisation.
