Stock markets across Asia tumbled after U.S. President Donald Trump signaled that upcoming tariffs would impact all countries, not just those with major trade imbalances with the U.S. Investors reacted swiftly, fearing broader economic fallout.
Trump’s plan, set to be announced midweek, includes a sweeping round of import taxes. These new tariffs will add to existing levies on steel, aluminum, and vehicles, as well as higher duties on Chinese imports. He referred to the day of implementation as “Liberation Day” for America, reinforcing his commitment to reshaping global trade in favor of U.S. industries.
While previous reports suggested the tariffs would target around 10 to 15 countries, Trump’s latest comments indicate a much wider scope. He assured that his administration would handle the process fairly but insisted other nations had not treated the U.S. well in trade agreements.
Market reactions were immediate. Japan’s Nikkei 225 fell by 4%, Hong Kong’s Hang Seng dropped 1.6%, and South Korea’s Kospi slipped 2.5%. Investors worry that escalating trade tensions could trigger a global slowdown, with fears of a U.S. recession growing.
Trump’s economic advisers argue that the tariffs could generate trillions in revenue and create jobs in the U.S. His trade advisor, Pete Navarro, estimated that duties on all imported cars alone could raise $100 billion annually, while the full tariff package could generate around $600 billion. A White House report also claimed that a 10% tariff on imports could lead to nearly 3 million new American jobs.
Global trade partners are preparing responses. The European Union and Canada have already warned of retaliatory measures, signaling a possible trade war if the U.S. proceeds with the plan. Meanwhile, ongoing trade negotiations with the U.K. and other nations may face new hurdles.
In a separate development, Trump confirmed that a deal involving the sale of TikTok’s U.S. operations must be completed by April 5. The deadline was originally set in January, requiring the app’s Chinese owner, ByteDance, to find a non-Chinese buyer to avoid a ban in the U.S. over national security concerns.