Asia markets fall after Trump announces new tariffs; approves TikTok deal

Asia-Pacific markets fell Friday after U.S. President Donald Trump announced fresh tariffs on furniture, heavy trucks and pharmaceutical products.

Starting from Oct. 1, kitchen cabinets, bathroom vanities and associated products will face a 50% tariff, while a 30% tariff will be charged for upholstered furniture, Trump said on Truth Social early Friday. Additionally, heavy trucks will be imposed a 25% levy.

Meanwhile “any branded or patented Pharmaceutical Product” faces 100% duties, except for companies that build drug manufacturing plants in the U.S., Trump added.

Overnight in the U.S., Trump also signed an executive order approving a proposal that would keep TikTok alive in the U.S. The transaction values the business at $14 billion, according to Vice President JD Vance.

Under the terms, which China must approve, a new joint-venture company will oversee TikTok’s U.S. business, with ByteDance retaining less than a 20% stake.

Australia’s S&P/ASX 200 opened flat.

Japan’s Nikkei 225 fell 0.34% at the open, while the Topix was flat.

South Korea’s Kospi declined 1.11%, and the small-cap Kosdaq retreated 0.84%.

Hong Kong’s Hang Seng index futures were at 26,372, lower than the HSI’s last close of 26,484.68.

Overnight in the U.S., the pullback in tech on Wall Street continued for a third straight day, partly due to rising yields.

The 10-year Treasury yield touched 4.2% after data on initial claims for unemployment insurance came in lower than expected. Artificial intelligence play Oracle slid 5%, while Tesla was also among the day’s laggards, falling 4%.

The S&P 500 closed down 0.50% at 6,604.72, as did the Nasdaq Composite, which settled at 22,384.70. The Dow Jones Industrial Average shed 0.38%, to finish at 45,947.32.

—CNBC’s Jonathan Varnian, Pia Singh and Sean Conlon contributed to this report.