Asian tech and semiconductor stocks tumbled on Tuesday following U.S. President Donald Trump’s announcement of increased tariffs on imports from Canada, Mexico, and China. Trump confirmed that 25% tariffs on Canadian and Mexican goods would proceed as planned, with no room for negotiation. Additionally, he announced a 10% increase on existing tariffs on Chinese imports, further escalating trade tensions.

The news sent shockwaves through Asian markets, with tech giants and chipmakers bearing the brunt of the sell-off. Japanese semiconductor equipment manufacturer Advantest plunged 9%, hitting its lowest level since late October, while chipmaker Renesas Electronics dropped 6.35%. SoftBank Group, a major tech investor, fell 6.25% amid reports of its CEO planning to borrow $16 billion for AI investments.

In South Korea, Samsung Electronics saw a modest 1% rise following the launch of its AI-powered Galaxy A series, but SK Hynix fell 3.26%. Chinese AI-related companies Alibaba and Kingsoft Cloud dropped 2.23% and 8.46%, respectively. Electric vehicle makers Xpeng, Li Auto, and BYD also faced declines, with BYD plummeting 6.60%.

Taiwan Semiconductor Manufacturing Company (TSMC) fell over 2% despite Trump’s praise for its $100 billion U.S. investment in semiconductor production. Investors remain uneasy as the tariff hikes threaten to disrupt global supply chains and dampen market sentiment.