New Delhi : After the United States, under former President Donald Trump, reimposed aggressive tariffs ranging from 10% to 41% on imports from 68 to 92 countries, global financial markets are reeling under pressure. The ripple effects of these steep tariff hikes are now clearly visible, particularly in Asian stock markets, which opened lower on Friday, signaling widespread investor panic and uncertainty.
Major Asian indices slumped at the opening bell:
- Japan’s Nikkei dropped 225 points (0.6%)
- South Korea’s KOSPI plunged 3.2%
- Taiwan Stock Exchange fell 0.4%
- Australia’s ASX slipped 0.7%
- Hong Kong’s Hang Seng dropped 0.2%
Markets witnessed a broad sell-off, with investors wary of a looming global trade conflict, and corporates bracing for supply chain disruptions and rising costs.
Trump first announced the return of protectionist tariff measures on April 2, 2025, targeting a wide range of countries. After a temporary 90-day suspension, the duties have now been fully enforced on countries that failed to reach bilateral trade deals with the U.S., including India, South Korea, Japan, and several European and Latin American nations.
Analysts fear this could trigger “Trade War 2.0”, severely impacting global economic recovery. Countries heavily dependent on exports to the U.S. are likely to face the brunt, while retaliatory tariffs are also being considered by several affected nations.
The shockwaves are not limited to stock markets. Rising import duties are expected to:
- Increase prices of consumer goods globally
- Create volatility in foreign exchange markets
- Hurt industrial production in export-driven economies
- Slow down global GDP growth projections
India, a significant trading partner of the U.S., is expected to witness strong short-term headwinds in sectors like textiles, auto components, chemicals, and electronics. Policy experts are urging the Indian government to revisit its trade strategy and push for fresh negotiations with the U.S.
Trump’s tariff blitz has reignited fears of a global economic slowdown. As markets digest the new trade reality, governments and businesses worldwide are scrambling to assess damage, adapt strategies, and avoid being caught in the crossfire of renewed protectionism.
