Asia-Pacific markets slide after Donald Trump’s sweeping tariffs on several countries

Asia-Pacific markets traded lower Monday after U.S. President Donald Trump levied tariffs on Canada, Mexico and China over the weekend.

Australia’s S&P/ASX 200 dropped 1.61%.

Japan’s Nikkei 225 fell 1.99%, while the Topix lost 1.87%. South Korea’s Kospi dropped 2.52% and the small-cap Kosdaq traded 2.79% lower.

Hong Kong’s Hang Seng Index dropped 1.23% at the open.

India’s Nifty 50 fell 0.69% while the Sensex lost 0.88% at the open. India’s Union Budget over the weekend offered a huge income tax relief to the country’s middle class. The Indian government also pledged to reduce its fiscal deficit to 4.4% of its GDP for the year beginning April 1, a decrease from a revised 4.8% for the current year, amongst other measures.

Chinese markets remain closed for the Lunar New Year holiday.

Caixin/S&P Global services manufacturing activity data for China will be released later in the day. The PMI is expected to come in at 50.5, according to Reuters poll estimates. 

On Saturday, Trump signed an order implementing a 25% tariff on imports from Mexico and Canada, and a 10% tariff on goods from China. Energy exports from Canada will face a reduced 10% tariff, which are set to come into effect on Tuesday stateside.

The U.S. conducts around $1.6 trillion in annual business with these three countries combined. 

Last Friday in the U.S., the three major averages closed lower. The S&P 500 shed 0.50% to end at 6,040.53, while the Dow Jones Industrial Average tumbled 337.47 points, or 0.75%, weighed down by a decline in Chevron. The 30-stock Dow ended the session at 44,544.66. The tech-heavy Nasdaq Composite slipped 0.28% to 19,627.44.

—CNBC’s Lisa Kailai Han, Alex Harring and Tanaya Macheel contributed to this report.