Asian Markets Crash as China Announces Retaliatory Tariffs

Asian markets took a severe hit today, extending a global sell-off triggered by U.S. President Donald Trump’s latest tariff announcements. The aggressive trade measures have stoked widespread anxiety over an impending trade war and the looming threat of a worldwide recession, after China announced retaliatory measures against President Trump’s tariffs, sending shockwaves through financial hubs across the region.

Singapore’s Straits Times Index (STI) bore the brunt of the downturn, plunging nearly 3 percent—or 116.37 points—to close at 3,825.86. The steep decline reflects growing unease about the city-state’s exposure to global trade disruptions. Deputy Prime Minister Gan Kim Yong, speaking on April 3, warned that the sweeping tariffs would deliver a “significant impact” to Singapore’s export-driven economy, amplifying concerns among investors.

In Japan, the situation turned even grimmer as the Nikkei 225 officially entered bear market territory, having fallen 20 percent from its July peak. The index shed 2.75 percent on the day, closing at approximately 33,762, according to posts on X and broader market sentiment. This marked a punishing 9 percent loss for the week, as fears of tighter monetary policy from the Bank of Japan and deteriorating global trade conditions battered investor confidence.

Also Read: Asian Markets Slip as Geopolitical Concerns Sway Investors

Australia’s S&P/ASX 200 also joined the downward spiral on Asian markets, sliding 2.4 percent to finish at 7,667.80. The resource-heavy index felt the strain of declining commodity prices and heightened uncertainty, with sectors like materials and energy leading the retreat. Meanwhile, South Korea’s Kospi index managed a relatively modest decline of 0.9 percent, ending the day at 2,464.32, though tech and auto stocks continued to face heavy selling pressure.

Markets in China, Hong Kong, and Taiwan were closed for holidays, offering a temporary reprieve from the regional bloodbath. However, the absence of trading did little to quell speculation about how these major economies might react when they reopen, given their deep ties to global supply chains.

Asian Markets are Just the Beginning

The ripple effects of Asian markets rout were felt in Europe’s early trading session. France’s CAC 40 dropped 1.8 percent,Germany’s DAX fell 2.2 percent, and Britain’s FTSE 100 declined 1.8 percent, signaling that the tariff-induced panic has firmly taken root across continents.

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Trump’s tariff salvo, which includes a 10 percent baseline duty on imports from most countries and steeper rates targeting specific nations, has reignited fears of retaliatory measures and shrinking global demand.

Analysts at The Trading Room warn that the escalating U.S.-China trade tensions, combined with domestic economic challenges in key Asian markets, could tip the region into a prolonged slowdown. For now, investors appear to be bracing for more turbulence as the full scope of the tariffs’ impact unfolds.