Mon Apr 07 03:13:51 UTC 2025: ## Global Markets Plunge as Trump’s Tariffs Spark Trade War Fears

**Tokyo/Washington** – Asian markets suffered a dramatic collapse on Monday, with major indexes plummeting by as much as 10%, as the fallout from President Donald Trump’s escalating trade war intensified. The sell-off followed a weekend of announcements of punishing new tariffs on a wide range of imported goods and was fueled by sharply down US futures contracts, signaling further losses on Wall Street.

Trump, despite the market turmoil which has already wiped trillions off US company valuations, defended his actions, claiming the tariffs are necessary “medicine” to correct trade imbalances. He insisted he couldn’t predict market reactions and reiterated his unwillingness to negotiate unless trade deficits are resolved. He also claimed numerous countries were eager to strike deals with him.

China, hit by earlier tariffs, responded with tit-for-tat tariffs of 34% on all US goods, effective April 10. This triggered the sharp declines across Asia, with the Nikkei 225 in Japan falling 6.5%, Taiwan’s index dropping almost 10%, and Singapore’s experiencing an 8.5% decline. Saudi Arabia’s market, open on Sunday, saw its worst daily loss since the COVID-19 pandemic.

Despite the escalating tensions, several countries, including Vietnam, have reportedly reached out to the Trump administration seeking negotiations and potential tariff delays. White House officials stated over 50 countries have contacted them, highlighting the global impact of the tariffs. However, Treasury Secretary Scott Bessent emphasized that the ultimate decision on negotiations rests with President Trump.

Prime Minister Benjamin Netanyahu of Israel, facing 17% tariffs despite Israel’s close ties to the US, is scheduled to meet with Trump to discuss the issue. UK Prime Minister Keir Starmer meanwhile warned of a changing global order, where deals and alliances will increasingly define international relations.

While White House officials downplayed the impact on US consumers, prominent economists such as Larry Summers voiced concerns about further market volatility. Trump himself, however, remained defiant, touting tariffs as a “beautiful thing” on social media. The differing viewpoints underscore the significant uncertainty and potential for further economic disruption stemming from the ongoing trade conflict. Russia was notably excluded from the latest round of tariffs, with explanations ranging from negligible trade volume due to sanctions to ongoing discussions related to the Ukraine conflict.

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