Overseas financial markets plunged early Monday, while U.S. stock futures faced new sales pressures under sales pressure Leading index crashes Last week, investors were worried The latest tariffs from the Trump administration volley.
Japan’s Nikkei 225 index fell nearly 8% shortly after Tokyo opened, while Australia’s S&P/ASX 200 fell more than 6%. South Korea’s Kospi lost 4.4%.
Stock Futures
Futures contracts for the Nasdaq 100 account for 5% of early Asian trading, while futures for both the S&P 500 and the Dow Jones industrial average are above 4%.
President Trump declares the lowest on April 2 Tariff 10% All imports and “Reciprocal” taxation In nearly 90 countries. Global tariffs came into effect on Saturday, while matching tariffs are scheduled to reach April 9.
The scale of the tariffs surprised investors, lowering U.S. stocks’ biggest drop in five years and eliminating trillions of investor wealth. Many economists warn of widespread tariffs on goods shipped to the United States May drive inflationcold spending from consumers has hurt economic growth.
China said on Friday it retaliates against the United States 34% tariff on imports Of all U.S. products that began April 10, Beijing has also begun levied a 15% tax on U.S. farm products, including chicken, pork and soy.
“China and the United States are now locked in a chicken game, and there is a serious global trade war looming,” Pantheon macroeconomics analyst told investors in a note.
The S&P 500 has fallen nearly 14% since Trump announced its latest tariffs last week, while the Dow Jones, the blue-chip stock market, has fallen 12%. During that period, Nasdaq stock fell nearly 16%, putting the technology-heavy index in a bear market, when stocks fell at least 20% from their recent highs.
The highest tariff since 1909
Since re-entering the White House in January, Mr. Trump has also imposed a 25% tariff on imports from Canada and Mexico, with import duties on Chinese goods significantly increased and 25% Foreign car collectionand other measures against U.S. trading partners.
According to Yale University’s Budget Laboratory, the average tariff rate for U.S. imports are now at their highest level.
Senior Trump administration officials have firmly defended their trade policy, saying on Sunday that more than 50 countries are subject to the latest round of tariffs. Speech “Faced with the country” On Sunday, Commerce Secretary Howard Lutnick said the tariffs “are certainly staying in place for days and weeks. The president needs to reset global trade.”
Despite last week’s market crash, some Wall Street economists still hope the Trump administration will relax tariffs in certain countries in the coming months in exchange for it to lower trade barriers. This may help with the Score stock.
“Our assumption is that in the coming months, Trump will reach deals with many countries, although China may be the exception,” said Paul Ashworth, chief economist at capital economics, in a research note. “Once it becomes clear that he is willing to accept relatively small concessions in exchange for reducing these tariffs, the stock should rebound.”
Analysts warn that the risk is that Mr. Trump instead proposed additional tariffs or attempted to punish trading partners who deployed their own countermeasures.
Contributed to this report.
