Global Markets Tumble as Trump's Tariffs Take Effect; Asia-Pacific Stocks Plunge

Global stock markets, particularly in the Asia-Pacific region, experienced a sharp downturn on Monday, April 7, 2025, following the implementation of new tariffs by the United States. The tariffs, which took effect on Saturday, April 5, include a universal 10% duty on all goods imported into the US. Further increases are scheduled for Wednesday, April 9, targeting the European Union (20%) and China (34%). Stock markets across Asia felt the impact, with Bombay falling by 3%, Seoul by 5%, Shanghai by nearly 6%, Sydney by 6%, Tokyo and Singapore by 7%, Hong Kong by over 9%, and Taiwan by nearly 10%. US stock futures also signaled a potential downturn, following significant losses in the Dow Jones (9.26%) and S&P 500 (10.52%) the previous week, which erased approximately $6 trillion in market capitalization. President Trump defended the tariffs as necessary to address trade deficits, likening the market reaction to "treatment" for the US economy. He stated that the tariffs would generate "tens of billions of dollars" for the US. In response, the EU is preparing countermeasures, with foreign ministers convening in Luxembourg. China has already announced retaliatory tariffs, escalating concerns about a global trade war. Treasury Secretary Scott Bessent acknowledged the market volatility but downplayed recession fears, asserting the administration is focused on building long-term economic fundamentals.