President Trump indicated that he intends to maintain a trade policy centred on high tariffs after the midterm elections and mentioned the possibility of imposing tariffs of up to 300% on foreign companies that build factories in the United States. The countries and products specifically targeted have not been disclosed, but he has announced that many measures will be taken over the next 1–2 weeks.
The president told reporters at the White House that tariffs of up to 300% could be imposed if foreign companies do not build factories in the United States. He said that approximately 3,000 foreign companies across the country are proceeding with factory construction and expressed the view that construction would be halted if they sought to avoid the removal of tariffs.
He did not specify the countries or products to be targeted and criticised those calling for the removal of tariffs. The timing of the application of the 300% rate has not yet been determined. He announced that many measures would be taken over the next 1–2 weeks and also mentioned the possibility of military action related to Iran.
The market fell on concerns over a Democratic Party victory. After the Nasdaq and S&P suffered sharp declines, he posted messages on social media criticising the Democratic Party. The Democratic Party indicated that it intends to consider legislation to remove the tariffs after the new Congress convenes in 2027.
In the Japanese market, selling spread across AI- and semiconductor-related shares, at times widening the decline in the Nikkei 225. Pressure over Japanese companies’ fulfilment of their investment commitments in the United States and the possibility of continuing trade friction between Japan and Europe and the United States were cited.