President Donald Trump’s sweeping new tariffs on imports from several countries sent global stock markets tumbling on Thursday. The US imposed hefty duties on goods from major trading partners, including a 54% tariff on Chinese imports and levies of 24% on Japan and 25% on South Korea. The news caused sharp declines in Asian markets shortly after opening.
Japan’s Nikkei 225 index fell over 4% before closing 2.8% down, while South Korea’s Kospi dropped 2.7% and Hong Kong’s Hang Seng Index was down 1.5%. In Europe, the Stoxx 600 index traded 1.2% lower, with Germany’s DAX down 1.3% and France’s CAC 1.6% lower. Shares of major tech and automotive companies in Asia were hit particularly hard.
Sony plummeted more than 5.4%, Toyota slid nearly 5%, and Samsung fell over 3%. Falling US stock futures pointed to a difficult day ahead on Wall Street as well.
Trump tariffs impact global markets
China called the US move “unilateral bullying” and vowed to take countermeasures. Japan’s Chief Cabinet Secretary Yoshimasa Hayashi said the tariffs were “extremely regrettable” and could significantly impact US-Japan economic ties. South Korea’s acting President Han Duck-soo ordered the government to “exert all its capabilities to overcome the trade crisis.”
The tariffs, which reverse decades of trade liberalization, have stoked fears of inflation and stalled economic growth.
“This is the worst-case scenario,” said Jay Hatfield, chief executive at Infrastructure Capital Advisors. “Enough to potentially send the US into a recession.”
Shares in sportswear firms Adidas and Puma tumbled more than 9% as key manufacturing countries were hit with steep levies. Luxury goods makers like Pandora and LVMH also fell sharply.
As the standoff continues, businesses and investors are bracing for increased volatility and uncertainty. Economists warn that a sustained trade war could harm global growth and disrupt international supply chains, with far-reaching repercussions for domestic and global economies.
