Asian Markets Tumble as Trump Tariffs Roil Global Investors
Asian shares continued to fall following a sharp Wall Street sell-off triggered by Donald Trump’s sweeping new tariffs—an economic shock not seen since the COVID-19 pandemic rocked global markets in 2020.
The fallout has been broad, with declines hitting everything from crude oil and Big Tech stocks to the US dollar’s value against other major currencies. Even gold, typically a safe haven in times of turmoil and recently at record highs, slipped after Trump unveiled his “Liberation Day” tariff package. Economists warn the move could usher in a damaging combination of slower economic growth and rising inflation.
Several major Asian markets—including Shanghai, Taiwan, Hong Kong, and Indonesia—were closed for holidays, helping contain the scope of Friday’s regional sell-off. But the impact elsewhere was significant.
Japan’s Nikkei 225 dropped 4.3% to 33,263.58, while South Korea’s Kospi shed 1.8%, closing at 2,441.86. In Australia, the S&P/ASX 200 fell 2.2% to 7,684.30. Officials in both Japan and South Korea stated they were seeking negotiations with the Trump administration to reduce tariffs.
In the US, markets experienced their worst day since the pandemic began. Fears that Trump’s tariffs could spark a global trade war and plunge the world into recession wiped out roughly $2.5 trillion from the S&P 500, which fell nearly 5%.
The Nasdaq led the decline, plunging 6%—its steepest daily drop since March 2020. The S&P 500 and Dow Jones Industrial Average also posted their worst single-day losses since June 2020. The Dow closed down 4% at 40,545.93, the S&P 500 dropped 4.8% to 5,396.52, and the Nasdaq Composite ended down 6% at 16,550.61.
Bond markets reflected the flight to safety, with the yield on 10-year US Treasury notes falling sharply to 4.033%—its lowest level since November 25—after briefly touching 4.004%. On Wednesday, the yield had stood at 4.059%.
