Trump tariff shock sends global markets tumbling

A global tariff war shock has triggered a massive sell-off across Asian markets, hitting Korea, Japan, China, Taiwan, and Hong Kong. The region suffered its worst decline since the pandemic in 2020. Investor sentiment has been shaken by growing fears of a tit-for-tat trade confrontation among major powers—including the U.S., China, and the EU—with anxiety levels surging to highs not seen since the pandemic-era turmoil.

The KOSPI closed at 2,328.20 on Monday, falling 137.22 points, or 5.57%, from the previous session. It was the first time in more than three months that the index had fallen below the 2,400 mark—last seen on January 2, the first trading day of the year, when it closed at 2,398.94. At 9:12 a.m., losses had deepened enough to trigger a sell-side sidecar for the first time since August last year.

The stocks in Mainland China and Hong Kong fell even more sharply on the first trading day following China’s announcement of retaliatory tariffs. "With markets closed on April 4 for the Qingming Festival, the impact of the U.S. tariff hike was absorbed in full when trading resumed." "The Hang Seng China Enterprises Index (H Index), which tracks major mainland Chinese firms listed in Hong Kong, plunged more than 11%." "The Shanghai Composite dropped nearly 8%, and the SZSE Component Index lost around 7%. Taiwan’s TWSE Index, reopening after the April 4 holiday, plunged below 20,000 for the first time since last August and ended the day down 9.70% at 19,232.35." Japan's Nikkei Stock Average tumbled 7.83% to close at 31,136.58, reflecting widespread weakness across Asian markets.

“The shock from the U.S. tariff hike, coupled with mounting fears of a global recession, has triggered a broad decline across major asset classes,” said Park Sang-hyun, a researcher at iM Securities. “With little prospect for tariff negotiations among key economies, a prolonged period of market correction or bearish sentiment is likely to persist.”


이동훈 기자 dhlee@donga.com