Asian markets slumped on Tuesday as concerns over a renewed US-China trade war resurfaced following President Donald Trump’s call for fresh curbs on Chinese investments in key sectors, including technology.

Losses in Asia mirrored a downturn on Wall Street, where tech giants stumbled after China’s DeepSeek launched a chatbot that disrupted the AI sector, prompting investors to reassess their positions. Markets are now closely watching Nvidia’s upcoming earnings for insights into the industry’s outlook.

Hong Kong’s Hang Seng Index dropped over 1%, with major tech firms leading the losses—Alibaba and JD.com fell more than 4%, while Tencent slipped over 2%. The declines come after Hong Kong markets recently hit a three-year high, driven by tech stocks.

Trump announced plans to impose tariffs on Canada and Mexico once a 30-day suspension ends next week, despite ongoing negotiations.

Mexican President Claudia Sheinbaum said talks would continue to avert the levies, while Canada’s Foreign Minister Melanie Joly warned that the tariff threat “may continue for a while.”

Over the weekend, Trump signed a memo seeking stricter scrutiny of foreign investments, targeting China’s use of US capital to advance its military and intelligence capabilities.

The White House defended the move as vital for national security, while China condemned it as discriminatory and an overextension of security concerns.