Global financial markets have experienced a significant downturn following the announcement of sweeping tariffs by U.S. President Donald Trump. The implementation of these tariffs has intensified fears of a global trade war, leading to a sharp sell-off across various markets.​

Impact on Asian Markets

Asian markets were among the hardest hit:​

  • Hong Kong’s Hang Seng Index: Plummeted 10.37% in early trading, with the Hang Seng Tech Index dropping 12.11%. Major tech companies, including Sunny Optical, BYD Electronic, and Lenovo, faced substantial losses.​
  • Mainland China’s CSI 300: Declined by 6.31%, further impacted by China’s retaliatory tariffs on U.S. goods.​
  • Japan’s Nikkei 225: Fell 6.2% to an 18-month low, triggering temporary halts in futures trading due to circuit breakers.​
  • Taiwan’s Taiex Index: Dropped 9.62%, its lowest level since March 2024, with major exporters like TSMC and Hon Hai Precision affected.​
  • South Korea’s Kospi: Decreased by 4.74%.​
  • Australia’s ASX 200: Declined by 3.87%, entering correction territory, with significant losses in mining and gold stocks.​

Effects on Other Markets

The repercussions extended beyond Asia:​

  • India’s Nifty 50 and Sensex: Dropped by 4.01% and 3.24% respectively, impacting major conglomerates such as Tata Motors and Reliance Industries.​
  • Singapore’s Straits Times Index: Fell by 6.26%, reaching a 52-week low.​
  • Malaysia’s KLCI, Thailand’s SETI, and the Philippines’ PSI: Experienced losses of 5.29%, 3.15%, and 3.14% respectively.​

Commodity and Currency Markets

Commodity and currency markets also reacted:​

  • Gold Prices: After briefly surpassing $3,100 per ounce, spot gold fell below $3,000 as investors sold holdings to cover equity market losses.​
  • Oil Prices: U.S. oil prices dropped below $60 per barrel, with West Texas Intermediate trading at $59.74, the lowest since April 2021.​
  • Japanese Yen: Strengthened slightly to 146.32 against the U.S. dollar, reflecting a shift towards risk-off assets.​

U.S. Market Outlook

U.S. stock futures indicated further declines:​

  • Dow Jones: Fell 5.5%.​
  • S&P 500: Lost nearly 6%.​
  • Nasdaq: Dropped 5.8%, entering bear market territory.​

Official Responses

Despite the market turmoil, President Trump and his economic advisers have downplayed recession concerns, asserting that the tariffs are necessary to address trade imbalances. The President has expressed openness to negotiations but emphasizes the need to resolve trade disparities first.