Asian shares tumble after Trump says he will impose new tariffs on drugs
and other goods
[September 26, 2025] By
TERESA CEROJANO
MANILA, Philippines (AP) — Asian shares fell on Friday after President
Donald Trump announced plans for new tariffs including 100% import taxes
on pharmaceutical drugs starting Oct. 1.
Trump said Thursday on his social media site that foreign makers of
furniture and cabinetry were flooding the United States with their
products and that tariffs must be applied “for National Security and
other reasons.”
He said foreign-made heavy trucks and parts are hurting domestic
producers. However, most such trucks are either made in America or are
U.S. brands made in Canada or Mexico.
U.S. futures and oil prices edged higher.
Most Asian indexes were in the red, with Japan's Nikkei 225 down nearly
0.9% to 45,354.99.
Sumitomo Pharma Co.'s shares lost 3.5% while Chugai Pharmaceutical sank
nearly 3%.
Government data on Friday showed inflation in the Tokyo area rose 2.5%
year-on-year in September, matching the pace in August but falling below
expectations of an uptick to 2.8%. Inflation, however, was still above
the Bank of Japan’s 2% target, leading to speculation about a rate hike
later this year.
South Korea's Kospi tumbled 2.5% to 3,386.01 in a third consecutive
session of losses amid growing worries over prolonged tariff
negotiations with the U.S.
In Chinese markets, Hong Kong's Hang Seng index fell nearly 0.5% to
26,357.15 while the Shanghai Composite index was down 0.6% to 3,831.80.
Australia's S&P/ASX 200 rose 0.2% to 8,787.70. India's BSE Sensex fell
0.5% while Taiwan's Taiex lost 1.7%.
On Thursday, Wall Street stumbled to a third straight loss as U.S.
stocks gave back more of their big gains for the year so far.
The S&P 500 fell 0.5% to 6,604.72, marking its longest losing streak in
more than a month. The Dow Jones Industrial Average dropped 0.4% to
45,947.32, and the Nasdaq composite sank 0.5% to 22,384.70. All three
indexes are still near their records set at the start of the week.
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Currency traders work near a screen showing the Korea Composite
Stock Price Index (KOSPI), left, at the foreign exchange dealing
room of the Hana Bank headquarters in Seoul, South Korea, Thursday,
Sept. 25, 2025. (AP Photo/Ahn Young-joon)
 Stocks felt pressure from reports
showing the U.S. economy may be stronger than economists thought.
While that’s encouraging news for workers and for people looking for
jobs, it could make the Federal Reserve less likely to cut interest
rates several times in the coming months.
The Fed just delivered its first cut of the year last week, and
officials had penciled in more through the end of next year. That
was critical for Wall Street after U.S. stocks shot to records since
April in large part because of expectations for rate cuts. Easier
rates can boost the economy and make investors more willing to pay
high prices for stocks and other investments.
If the Fed doesn’t cut rates as often as investors expect, it would
empower criticism that the U.S. stock market is too expensive after
rising so much, so quickly.
Treasury yields ticked higher in the bond market as traders pared
bets for the number of upcoming cuts to rates by the Fed. The yield
on the 10-year Treasury rose to 4.17% from 4.16% late Wednesday.
"For Asia, this is not just noise from abroad — it is structural
vulnerability laid bare. Tariffs aimed at pharma may be targeted,
but they ripple through investor psychology like a pebble dropped
into a still pond. And with valuations stretched, every tremor feels
magnified," Stephen Innes of SPI Asset Management wrote in a
commentary. In other dealings early Friday, benchmark U.S. crude
added 36 cents to $65.34 per barrel. Brent crude, the international
standard, climbed 26 cents to $68.84 per barrel.
The U.S. dollar edged up to 149.76 Japanese yen, from 149.75 yen.
The euro rose to $1.1677 from $1.1667.
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