Stock markets across Asia-Pacific and Europe tumbled on Thursday, and US markets were set to open lower, following US President Donald Trump’s imposition of broad-based tariffs on trading partners around the world. Many Asian countries took some of the largest hits. Trump’s newly announced tariffs have increased levies on Chinese imports, the second-largest source of US imports after Mexico, from 20% to 54%.
Japan and South Korea, both major US trading partners and allies, faced tariffs of 24% and 25%, respectively. Taiwan, a significant player in electronics manufacturing, was hit with a 32% tariff. As a result, US stocks dropped in after-hours trading on Wednesday, causing Asian markets to fall shortly after opening on Thursday.
Japan’s benchmark Nikkei 225 index tumbled over 4% after the open, closing 2.8% down. South Korea’s Kospi index dropped 2.7% and closed less than 1% lower. Hong Kong’s benchmark Hang Seng Index was down 1.5%.
Australia’s ASX 200 index closed 0.9% down. Markets in Taiwan were closed on Thursday. Shares of major tech and automotive companies in the region were among the hardest hit.
Japanese tech giant Sony fell more than 5.4%. Carmakers Toyota and Honda slid nearly 5% and over 4% at one point, respectively. South Korean tech heavyweight Samsung and car giant Hyundai each fell over 3%.
In Europe, the region’s benchmark Stoxx 600 index was trading 1.2% lower, while Germany’s DAX index was down 1.3%, and France’s CAC 1.6% lower. London’s FTSE 100 had fallen 1%. Falling US stock futures also indicated a difficult day ahead.
Tariffs impact global stock markets
Dow futures were down 2.4%, S&P 500 futures were 2.9% lower, and the tech-heavy Nasdaq was set to open 3.2% down. Meanwhile, gold surged to a record high above $3,160 an ounce as investors flocked to the precious metal, traditionally seen as a safe-haven asset.
President Donald Trump introduced the sweeping global tariffs at the White House on April 2, 2025. The announcement escalated tensions with global trading partners. Trump has contended that these measures would revive domestic manufacturing and address what he views as unfair trade practices.
Before Wednesday, the US stock market had already faced volatility throughout the year, partly due to Trump’s inconsistent stance on tariffs. The newly announced tariffs add to previous import taxes on aluminum, steel, and cars. Trump has imposed 25% tariffs on all steel and aluminum imports, along with a 25% tariff on foreign cars set to take effect on Thursday.
Additionally, a 25% tariff on foreign auto parts is scheduled for early May. These new levies are in addition to any pre-existing country-specific tariffs. China responded by calling the US move a “typical unilateral bullying practice” and vowed to “resolutely take countermeasures to safeguard its own rights and interests.” A spokesperson for China’s Commerce Ministry urged the US to immediately cancel these unilateral tariffs and engage in equal dialogue to resolve differences.
Japanese Chief Cabinet Secretary Yoshimasa Hayashi labeled the new tariffs “extremely regrettable,” warning they could significantly impact the economic relationship between the US and Japan. The Japanese government would take all necessary measures to ensure Japan is not subject to such tariffs. Japan also faces a 25% tariff on all foreign-made automobiles and car parts, severely impacting its automotive industry, which exported about $40 billion in automobiles to the US in 2024.
South Korea’s acting President Han Duck-soo described the situation as “extremely serious” and ordered the government to mobilize all capabilities to overcome the trade crisis. The Korean automobile industry, led by Hyundai, is also set to be affected by the auto tariffs. Additionally, the 25% tariff on steel products imposed last month will heavily impact South Korea, the fourth-largest exporter of steel to the US.
Taiwan’s government condemned the tariffs as “highly unreasonable” and “unfair,” promising to lodge formal complaints with the US. While Taiwan’s essential semiconductor industry, which exports the world’s most advanced computing chips, was spared, the government argued that the tariff rates lacked scientific basis.
