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Asian markets tumble as Trump’s tariff war escalates

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Asian shares slid on Monday morning after US President Donald Trump followed through on his promise to impose tariffs on Canada, Mexico and China.

Investors are bracing for a turbulent period that could hit the earnings of major companies and dent global growth.

Canada and Mexico have said that they will hit back with retaliatory tariffs while China promised “corresponding countermeasures” and vowed to challenge Trump’s move at the World Trade Organization.

Trump has said the tariffs are necessary to halt the flow of illegal drugs and immigration into the US.

Hong Kong’s Hang Seng Index was down 0.7%, Japan’s Nikkei 225 was 2.8% lower, South Korea’s Kospi tumbled 3% and Australia’s ASX 200 fell 1.9%.

Markets in mainland China remained closed for the Lunar New Year holiday.

Meanwhile, the US dollar was showing strength, rising to a record high against China’s yuan, while the Canadian dollar plunged to its lowest level since 2003.

“The prospect of having a long and protracted trade spat between the world’s two biggest economies is causing investors to take risk off the table today,” said Tim Waterer, chief market analyst at financial services firm KCM Trade.

“The other worry for investors is which countries may be on Trump’s tariff hit list next”.

The tariffs announced by the Trump administration over the weekend target the United States’ three largest trading partners and the US president has threatened he might not stop there.

Trump has also vowed to impose tariffs on the European Union “pretty soon”.

Chief investment strategist at investment bank Saxo, Charu Chanana, warned that while tariffs could be beneficial for the US economy in the short term, in the long run they pose significant risks.

“Repeated use of tariffs would incentivise other countries to reduce reliance on the US, weakening the dollar’s global role,” she added.

Trump has said he will speak to Canada and Mexico’s leaders on Monday about the tariffs which are due to come into effect at midnight on Tuesday.

The two countries are facing tariffs of 25% on their exports to the US, while Chinese goods will face an additional 10% tax.

(BBC News)

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Last hospital in North Gaza governorate evacuated after Israeli order

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The last hospital providing health services in the North Gaza governorate is out of service after the Israeli military ordered its immediate evacuation, the facility’s director has said.

Dr Mohammed Salha told the BBC patients were evacuated from al-Awda hospital in Jabalia on Thursday evening after “two weeks of siege”, and there was now “no health facility working in the north”.

The Israeli Defense Forces (IDF) is yet to respond to enquiries.

It comes as efforts continue to secure a ceasefire. Hamas says it is “thoroughly reviewing” a US plan, which the White House has said has been “signed off” by Israel.US President Donald Trump said on Friday he believed a deal was “very close”. But Hamas has said the plan does not satisfy its core demands including Israel’s commitment to ending the war.

The deal would reportedly involve a 60-day pause in fighting, with Hamas releasing 28 hostages – alive and dead – in the first week, with the remaining 30 hostages freed once a permanent ceasefire is in place. More than 1,000 Palestinian prisoners would be released, while humanitarian aid would be sent to Gaza via the United Nations and other agencies.

Israel has continued its military operation in the territory – at least 72 people were killed in strikes over the past 24 hours, Gaza’s Hamas-run health ministry said on Friday.

On Thursday evening, the Israeli military ordered the evacuation of areas including the al-Awda hospital, saying there was terrorist activity in the region which warranted the IDF to “expand its offensive activity”.

(BBC News)

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India says over 1,000 nationals deported by US since January

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More than a thousand Indians have “come back or [been] deported” from the United States since January, India’s foreign ministry has said.

Spokesperson Randhir Jaiswal said that around 62% of them came on commercial flights, without providing more details.

This comes in the wake of President Donald Trump’s campaign against undocumented migrants to the US. Trump had earlier said that India “will do what’s right” on the deportation of illegal migrants.

In February, the US had deported more than hundred Indians on a US military flight, with reports saying some of them were brought back shackled.

“We have close cooperation between India and the United States on migration issues,” Mr Jaiswal said during the ministry’s weekly briefing, adding that India verifies nationalities before “we take them back”.

In total, the US is said to have identified about 18,000 Indian nationals it believes entered the country illegally.

Earlier this month, the US Embassy in India issued a warning that overstaying in the US could lead to deportation or a permanent ban on entry in the country, even for those who entered legally.

Mr Jaiswal also spoke about the Trump administration’s updated policy on student visas which is likely to impact Indian students planning to enrol in US universities.

The US had announced on Thursday that it had halted the scheduling of new visa interviews for foreign students as it considered expanding the screening of their social media activities.

“While we note that issuance of a visa is a sovereign function, we hope that the application of Indian students will be considered on merit, and they will be able to join their academic programs on time,” Mr Jaiswal said.

Mr Jaiswal also said that 330,000 Indians students had gone to the US for studies in 2023-24 – which makes India the largest source of international students in the country.

On Thursday, expanding its new visa policy, the US further announced that it was working to “aggressively revoke visas for Chinese students, including those with connections to the Chinese Communist Party or studying in critical fields”.

(BBC News)

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US trade court blocks Trump tariffs

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A US federal court has blocked President Donald Trump’s sweeping tariffs, in a major blow to a key part of his economic policies.

The Court of International Trade rules that the emergency law invoked by the White House does not give the president unilateral authority to impose tariffs on nearly every country.

It also blocks the separate levies the US imposed on China, Mexico and Canada.

Within minutes the Trump administration lodged an appeal, saying: “It is not for unelected judges to decide how to properly address a national emergency”.

So there will be no change at the border just yet, business reporter Katie Silver writes – as the decision goes through the appeals process.

The lawsuit was filed on behalf of five small businesses that import goods from abroad.

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