Asian Markets Plunge Amid Trade War Fears: Australian Stocks Down Nearly 2%, Nikkei 225 Drops 2.4% on April 5, 2025

Asian stock markets experienced a significant downturn on April 5, 2025, driven by concerns over escalating trade tensions following U.S. President Donald Trump's tariff announcements. The Australian S&P/ASX 200 fell almost 2 percent to 7,714.90, while Japan's Nikkei 225 plummeted 2.4 percent to below 33,900. These declines reflect broader anxieties about the potential global economic impact of increased protectionist measures. Australia's S&P/ASX 200 Index declined by 1.84 percent, with energy and technology sectors leading the losses. BHP Group and Rio Tinto each fell almost 1 percent, while Origin Energy, Beach Energy, and Santos each slipped more than 7 percent. Japan's Nikkei 225 Index dropped 2.64 percent, with SoftBank Group losing almost 6 percent and Toyota down more than 5 percent. In Japan, household spending was down 0.5 percent on year in February. Trump's plan involves imposing a baseline 10 percent tariff on all U.S. imports, with rates as high as nearly 50 percent for countries deemed 'worst offenders.' China, facing a combined tariff rate of 54 percent, has vowed countermeasures, with Canada and the European Union also preparing responses. This trade war could fuel inflation and damage the global economy. European markets also reacted negatively, with the French CAC 40 plummeting 3.3 percent and the German DAX diving 3.0 percent. The U.S. market saw the Dow Jones Industrial Average tumble 4.0 percent, the S&P 500 plunge 4.8 percent, and the Nasdaq plummet 6.0 percent. The situation remains fluid, with potential for further market volatility as countries respond to the new tariffs, according to RTTNews.com and AFX News.