Global stock markets plunged as Asian indexes suffered record losses following President Donald Trump’s announcement of sweeping US tariffs last week. Shanghai, Tokyo, Hong Kong, and Sydney markets fell sharply on Monday, experiencing steepest declines in decades.
The Hang Seng Index dropped to 13.22%, marking its worst day since the 2008 financial crisis. Japan’s Nikkei 225 sank 7.8%, while the Shanghai Composite closed at 7.3% after being shut down on Friday for a holiday.
Taiwan’s Weighted Index Collapsed by 9.7%, its largest recorded single-day fall. South Korea’s Kospi ended 5.6% lower, while Australia’s ASX 200 lost 4.2%, adding to regional turmoil. Trump’s new tariff policy includes levies ranging from 10% to 54% on imports from key Asian economies.
China faces the heaviest blow with a 54% tariff, followed by Cambodia at 49% and Vietnam at 46%. Even longtime US allies like Japan and South Korea must now grapple with 26% tariffs. Countries such as Singapore, Australia, and New Zealand have already had baseline 10% tariffs enforced, dealing additional blows to their export-driven economies.
The tariffs impact various products, from garments to electronics, hitting manufacturing hubs the hardest. In Europe, early trading saw steep losses in banking and defense stocks. The FTSE 100 fell nearly 5%, while German and French markets saw similar declines.
Recession fears now loom large. Goldman Sachs raised its US recession odds from 35% to 45%, while JPMorgan now sees a 60% chance of a global downturn. Experts warn of continued volatility, with US futures pointing to another sharp fall on Wall Street tonight.
