Global financial markets were sent into a tailspin as sweeping tariffs announced by U.S. President Donald Trump triggered chaos across continents. Asian markets opened to panic: Japan's Nikkei 225 index dropped nearly 9 percent mid-session, closing 7.83 percent lower – its worst single-day loss since August 2023. 😱
In a domino effect, South Korea's KOSPI slid by 5.57 percent, leading to a temporary trading halt, while Hong Kong's Hang Seng Index tumbled 13.2 percent by close. Over in the Chinese mainland, the Shanghai Composite fell 7.34 percent, with over 2,900 A-share stocks hitting their daily drop limits. The Taiwan region wasn't spared either, as its benchmark index crashed by 9.7 percent, triggering circuit breakers.
European markets did not escape the storm, with the pan-European Stoxx 600 falling by 3.8 percent and key indexes in Germany, France, and Britain following suit. On Wall Street, both the Nasdaq Composite and S&P 500 dropped over 4 percent in early trading, echoing the record rout from the previous week.
The turmoil stems from Trump’s April 2 announcement of sweeping reciprocal tariffs – a 10 percent baseline on all imports with punitive rates rising up to 49 percent for targeted economies like China and Vietnam. Dubbed "economic medicine," the measure has revived fears of a 1930s-style trade war. 📉 Experts at J.P. Morgan have even warned that such moves might push global recession probabilities as high as 60 percent.
Governments are scrambling to react. Canada has imposed a 25 percent retaliatory tariff on U.S. auto imports, while the EU is preparing countermeasures. Protesters across 50 U.S. states and several European capitals have taken to the streets, chanting "Hands off our economy!" as market anxiety grows.
As the aftershocks of this tariff crisis ripple across the globe, investors and everyday people alike are left wondering what comes next in this unfolding financial drama. Stay tuned as we continue to bring you the latest updates.
Reference(s):
Global financial markets extend losses amid Trump tariff crisis
cgtn.com
