Trump sparks turmoil with sweeping tariffs on U.S. imports

In early April 2025, markets around the world faced significant turmoil following a sudden announcement by United States President Donald Trump regarding substantial tariffs. On April 2, Trump declared a minimum 10% tariff on all U.S. imports, affecting nearly 90 countries, which took effect the following Saturday. This sparked immediate reactions in global financial markets, particularly in Asia, where indices such as Japan's Nikkei 225 and Hong Kong's Hang Seng experienced substantial declines. Economic analysts expressed concerns that such broad tariffs could drive up inflation, dampen consumer spending, and ultimately hinder economic growth. As financial markets reacted sharply, Japan's Nikkei 225 index plunged nearly 8% upon market opening and steadied to a 6% loss by midday. The bonds trading in major Asian markets indicated widespread bearish sentiment, with the Hang Seng dropping as much as 10.7%, and the Shanghai Composite index losing 6.3%. Australia’s S&P/ASX 200 faced a drop greater than 6%, recovering slightly to a 4% loss, while South Korea’s Kospi lost around 5.2%. Upcoming U.S. stock futures mirrored this downtrend, with the Nasdaq 100 futures shedding 5%, and both S&P 500 and Dow Jones Industrial Average futures plunging more than 4% in early Asian trading. The impetus for these drastic measures was the escalating tensions between the U.S. and China, following China’s retaliatory move to impose a 34% tariff on all U.S. products starting April 10, in addition to an already imposed 15% tax on American agricultural goods earlier in March. Economists likened the situation to a