Factory owners across Asia are increasingly flagging potential supply chain snarls and the risk of weakening demand as a result of President Donald Trump’s escalating tariff war — even as factory activity has broadly improved.

Asian markets tumbled on Tuesday after US President Donald Trump heaped tariffs on Chinese imports and warned levies on Mexico and Canada could not be averted. Beijing also warned on Tuesday that it would take countermeasures against new US tariffs on Chinese imports.

Investors are ditching risky corners of the market for areas perceived as havens, reversing recent trends.

The outlook for emerging Asian currencies is worsening again after US President Donald Trump announced new tariffs on China, curbing optimism that his threats were mainly bargaining ploys.

Trump’s announcement dashed hopes on Wall Street that he would choose a less painful path for global trade, and it followed the latest warning signal on the U.S. economy’s strength. Monday’s loss shaved the S&P 500’s gain since Election Day down to just over 1% from a peak of more than 6%.

Asian markets rose cautiously on Monday, with investors eyeing a potential Chinese stimulus package and President Donald Trump's looming tariffs.