NEW DELHI: Asian markets plummeted on Monday amid escalating global financial turmoil sparked by U.S. President Donald Trump’s aggressive tariff campaign and swift retaliation from China. Fears of a full-scale trade war deepened, as U.S. futures pointed to further Wall Street losses following Friday’s historic sell-off.
Tokyo’s Nikkei 225 tumbled 7.1% in early trading, after nearly touching an 8% drop. Taiwan’s benchmark index slid close to 10%, while South Korea’s Kospi fell 5.5%. Australia’s ASX 200 sank 6.3%—hitting a 15-month low—and Singapore’s markets plunged 8.5%, signaling widespread investor panic across Asia.
The rout followed Wall Street’s worst day since the COVID-19 crisis. On Friday, the S&P 500 shed 6%, the Dow Jones dropped 5.5%, and the Nasdaq lost 5.8%, wiping out trillions in global market value. Analysts estimate more than $9 trillion has evaporated from global equities in just 48 hours, drawing parallels to the 2008 financial collapse.
Investor sentiment was further rattled by China’s announcement of a 34% tariff on all U.S. imports starting April 10—a direct response to Trump’s sweeping tariff plan. The move stoked fears of drawn-out economic conflict and rising instability.
Energy and currency markets also reflected the chaos. U.S. crude dipped below $60 a barrel for the first time since April 2021, while the dollar weakened to 145.98 yen as investors sought safe-haven assets.
Despite the mounting crisis, Trump remained defiant. Speaking aboard Air Force One, he denied orchestrating a market collapse and stated, “Sometimes you have to take medicine to fix something.” He added confidently, “They’re dying to make a deal.”
The latest escalation began Friday when China’s Commerce Ministry unveiled matching 34% tariffs on all U.S. goods, branding it a “direct and necessary” countermeasure.
Back in Washington, officials projected a firm stance. White House National Economic Council head Kevin Hassett said over 50 countries had reached out to the administration seeking negotiations, with Vietnam reportedly requesting a 45-day delay on tariffs. Treasury Secretary Scott Bessent claimed, “At this moment, [Trump] has created maximum leverage… We’ll see what the countries bring to the table.”
Federal Reserve Chair Jerome Powell warned of serious economic headwinds, cautioning that a prolonged trade war could bring “higher inflation and lower growth,” hinting at limited room for interest rate cuts. Trump lashed out in response: “CUT INTEREST RATES, JEROME, AND STOP PLAYING POLITICS!”
The global fallout has been swift. Israel, hit with 17% U.S. tariffs, is sending Prime Minister Benjamin Netanyahu to Washington for emergency talks. UK Prime Minister Keir Starmer wrote in an op-ed, “The world as we knew it has gone,” emphasizing the importance of alliances moving forward.
Markets in Saudi Arabia, open on Sunday, also felt the sting—dropping 6.78%, their worst day since the pandemic. Australian Prime Minister Anthony Albanese acknowledged the turbulence, saying, “You can’t change global events. What you can do is prepare for them.”
While the Trump administration downplayed potential domestic fallout, economists warned of price hikes and sustained market instability. “There’s a very good chance we’ll see more turbulence like Thursday and Friday,” said former Obama adviser Larry Summers.
Trump, however, remained characteristically bullish. “THIS IS A GREAT TIME TO GET RICH,” he posted on social media. He followed up with, “Someday people will realize that tariffs, for the United States of America, are a very beautiful thing!”
Wall Street wasn’t convinced. China-linked firms suffered major losses—DuPont plunged 12.7% after Chinese regulators launched an antitrust probe, and GE Healthcare fell 16%, with China accounting for 12% of its revenue.
As the Federal Reserve grapples with next steps, Powell emphasized their commitment to price stability: “Our obligation is to keep longer-term inflation expectations well anchored… [and ensure] a one-time increase in the price level does not become an ongoing inflation problem.”
With tensions climbing and markets in freefall, the global economy braces for what could become one of the most consequential trade standoffs in modern history.
