International markets crash as U.S. tariffs spark trade war fears

In early April 2025, economic instability stemming from U.S. tariffs and anticipated retaliation from China created significant turmoil in international markets. The Hang Seng Index in Hong Kong saw a dramatic drop of 13.22%, closing at 19,828.30 points. Meanwhile, the SSE Composite on the Shanghai Stock Exchange plummeted 7.34% to 3,096.58. Other Asian markets were affected, with Taiwan's Taiex decreasing by 9.7% and South Korea’s Kospi falling by 5.57%. Japan's Nikkei also experienced a significant decline of 7.83%. European exchanges mirrored this decline, where Italy's IT40 index dropped over 7% to 32,234, while Spain’s ES35 fell by 6.1% to 11,667. The FTSE 100 in Great Britain and the CAC 40 in Paris also reported losses of 5% and 5.9%, respectively. Germany's DAX plunged 6.5% to 19,311.29, signaling a widespread economic downturn across the continent. The impact of these movements extended beyond just the markets, as expectations grew that U.S. markets would follow suit when they opened. On the previous Friday, major U.S. indices had already faced significant losses, with the Dow Jones Industrial Average experiencing a 5.5% drop. Given the complex international trade dynamics and the number of countries involved, experts believe that this volatility could persist for the foreseeable future. Nathan Thooft, chief investment officer at Manulife Investment Management, expressed that ongoing uncertainty and market instability are likely scenarios moving forward. Overall, the combination of potential trade conflicts, particularly between the U.S. and China, alongside existing economic factors, has created a climate of significant concern for investors worldwide. Experts and analysts continue to watch the situation closely, as market responses reflect underlying fears related to the ever-shifting trade landscape.