Asian stocks slide after Trump imposes tariffs on drugs and other goods

MANILA, Philippines — Asian shares fell on Friday after President Donald Trump announced plans for new tariffs, including a 100% import tax on pharmaceutical drugs starting Oct. 1. Trump said foreign makers of furniture and cabinetry were flooding the United States with their products and that tariffs are needed for national security and other reasons. He also argued that foreign-made heavy trucks and parts are undercutting domestic producers, though most such trucks are either built in the United States or produced by U.S. brands in Canada or Mexico. U.S. futures slipped as oil prices rose.

Across markets, most Asian indexes were in the red. Japan's Nikkei 225 dropped about 0.3% to 45,629.79. Sumitomo Pharma Co. shares fell 5.2% and Chugai Pharmaceutical slid 3.9%. Tokyo's inflation report for September showed prices rising 2.5% year over year, matching August but below expectations of 2.8%, keeping inflation above the Bank of Japan's 2% target and fueling speculation about a rate increase later in the year. South Korea's Kospi lost 2.5% to 3,384.58 in a third straight session of declines amid the tariff negotiations with Washington. In mainland China, Hong Kong's Hang Seng slipped 0.7% to 26,313.66 and the Shanghai Composite eased 0.1% to 3,850.07. Australia’s S&P/ASX 200 edged up 0.2% to 8,790.20. India’s Sensex dropped 0.7% and Taiwan’s Taiex fell 1.5%.

On Wall Street, the previous session saw a third straight decline as the major indexes pulled back from earlier gains. The S&P 500 fell 0.5% to 6,604.72, the Dow Jones Industrial Average slipped 0.4% to 45,947.32, and the Nasdaq Composite dropped 0.5% to 22,384.70. Despite the retreat, all three indexes remained near records hit at the start of the week amid buoyant earnings and expectations that the Federal Reserve would cut interest rates this year.

News of stronger-than-expected U.S. growth data kept the Fed in focus. Officials had signaled more rate cuts through the end of next year, but stronger data could reduce the likelihood of multiple cuts. The Treasury market showed yields moving higher as traders reassessed the pace of policy easing, with the yield on the 10-year Treasury rising to 4.17% from 4.16% late Wednesday. Stephen Innes of SPI Asset Management noted that the global rebound year to date feels stretched as yields rise, and warned that sentiment could wobble if markets stay stretched at high levels.

Energy and currency markets also shifted. Benchmark U.S. crude rose 30 cents to $65.28 per barrel, while Brent crude edged up 25 cents to $69.67. The U.S. dollar eased to 149.73 Japanese yen, from about 149.75, and the euro rose to around $1.1676. The move in currencies and commodities reflected shifting expectations for U.S. policy and inflation dynamics.