Global financial markets faced historic turmoil on Monday as U.S. tariff policies triggered a cascading sell-off, with Asian, European, and U.S. indices all plummeting amid fears of a deepening trade war.
Asia Hit Hardest
Japan’s Nikkei 225 dropped 7.83%, its worst performance since August 2023, while South Korea’s KOSPI slid 5.57%, forcing a trading halt. Hong Kong’s Hang Seng Index nosedived 13.2% – its sharpest single-day decline in 30 years – and the Chinese mainland’s Shanghai Composite tumbled 7.34%. The island of Taiwan’s benchmark index crashed 9.7%, triggering circuit breakers.
Europe, Wall Street Follow Downtrend
Europe’s Stoxx 600 fell 3.8%, with Germany’s DAX and France’s CAC 40 down 3.75% and 4%, respectively. Wall Street opened under intense pressure: the S&P 500 and Nasdaq both lost over 4% in early trading, continuing last week’s $5 trillion wipeout. Tech stocks like Nvidia and Tesla remained vulnerable, down 15% since Thursday.
Tariff Fallout Sparks Global Alarm
Markets reacted to U.S. President Donald Trump’s April 2 announcement of 10% baseline tariffs on imports, with targeted rates up to 49% for economies like China and Vietnam. Analysts warn the move risks 1930s-style trade conflicts, with J.P. Morgan estimating a 60% global recession risk. Canada and the EU prepared retaliatory measures, while protests erupted in 50 U.S. states and European capitals.
