Asian stocks wobble after Trump threatens new tariffs

Asian stocks wobbled and the dollar rose on Monday after Donald Trump warned the US president against imposing more tariffs, including on steel and aluminium, a move that could stoke inflation and limit the scope for interest rate cuts.

Trump told reporters on Air Force One that he would announce a 25% tariff on all steel and aluminium imports into the US today, and that he would unveil similar tariffs on Tuesday or Wednesday.

The comments came shortly after German Chancellor Olaf Scholz said the European Union was ready to respond within an hour if the United States imposed tariffs on European goods, highlighting the risks of an escalating trade war, Reuters reported.

China’s retaliatory tariffs on some US exports are set to take effect on Monday, with no sign of progress in talks between Beijing and Washington.