New Delhi [India]: Asian stock markets experienced a dramatic sell-off on Monday, reacting sharply to US President Donald Trump’s announcement of a new round of reciprocal tariffs on major trading partners. The move triggered widespread investor concerns over global trade disruptions and the potential for a broader economic slowdown.
Regional Markets Deep in Red
Japan’s Nikkei 225 index led the losses, plunging 5.79%, while Hong Kong’s Hang Seng suffered a staggering 10% decline.
Taiwan’s Taiwan Weighted Index was down 9.61%, and South Korea’s KOSPI shed 4.14%.
China’s Shanghai Composite dropped 6.5%, and Australia’s S&P/ASX 200 declined 3.82%, illustrating the broad-based impact across the Asia-Pacific region.
The tariff shockwaves also rippled into the US markets, where Dow Jones futures were down by 2.22%, suggesting a weak opening for Wall Street.
“This global equity sell-off reflects deepening investor fears about how escalating trade barriers will affect growth. Export-driven Asian economies are particularly vulnerable,” said market analyst Rohit Gupta.
India Not Spared
Back home, Indian markets closed last week on a sour note, with the Sensex tumbling over 2,100 points due to tariff uncertainty.
On Monday, Gift Nifty Futures also pointed to a negative opening for domestic equities, continuing the global trend.
Vinod Nair, Head of Research at Geojit Financial Services, remarked:
“Investors are closely monitoring potential retaliatory measures from affected countries. The uncertainty is fuelling a flight to safe-haven assets like gold and bonds, as markets brace for prolonged volatility.”
Trump Defends Tariffs Amid Market Turmoil
Amid market jitters, President Trump remained defiant, stating aboard Air Force One:
“I don’t want anything to go down. But sometimes, you have to take medicines to fix up things.”
His administration’s decision to impose tariffs — including 34% on Chinese goods and 26% on Indian exports — has triggered retaliatory measures and raised fears of a global trade war.
Looking Ahead
Investors are expected to track geopolitical responses, central bank commentary, and corporate earnings closely in the coming days. The focus will remain on whether global powers can return to the negotiation table or brace for a prolonged period of economic uncertainty and market turbulence.