Asian Markets Slip Following Trump's 'Liberation Day' Tariffs

South Korea was also hit with a 25% tariff, leading to a 1.9% decline in Kospi soon after its opening. (Photo source: Envato)

Global financial markets witnessed a selloff on Thursday, after US President Donald Trump's announcement of tariffs on imports of goods across the globe. Stocks fell, dollar slipped, and treasuries rallied as investors looked for safe havens.

Tokyo's Nikkei 225 fell over 3.4% but saw some recovery. This comes after Trump imposed 24% reciprocal tariff on Japan, which is considered as one of the closest allies of the country.

South Korea was also hit with a 25% tariff, leading to a 1.9% decline in Kospi soon after its opening. In Australia, the S&P/ASX 200 fell 1.8% to 7,793.10, after US announced reciprocal tariff of 10%.

While Hang Seng fell over 2.7%, Shanghai Composite was down 0.5%. Taiwan futures were also trading 1.6% lower, indicating a lower opening for the benchmark.

The Asian financial markets have taken cues from the S&P 500 future that fell 3%, while the Dow Jones Industrial Average was down 2%. The S&P 500 index closed 0.7% higher at 5,670.97 after it saw a loss of 1.1% that was later recovered by an equal rise. The index saw a similar pattern through this week, where it opened in the red but closed higher.

The Dow Jones Industrial Average also closed 0.6% higher at 42,225.32 and the Nasdaq composite added 0.9% to close at 17,601.05. Global corporations like Apple Inc. and Nike Inc., that rely on international trade, also fell in the after-market trading.

The US 10-year Treasury yields fell to the lowest level in over five months, as investors rushed towards safe havens—strengthening the Japanese yen and gold, which touched a new record high.

West Texas Intermediate, US oil price and copper fell over 2% during early hours of trading in Asia.

The dollar index also fell and was close to 103, in contrast to the expectation of a rise on tariffs.

Trump's Tariff Announcement

Financial markets across the globe have been shaken recently because of uncertainty around Trump's move to impose tariffs. While speaking at the Rose Garden on 'Liberation Day' on Wednesday, Trump framed the tariffs as part of his broader economic vision to "make America wealthy again".

Trump announced a 10% baseline tariff on all countries with the new tariff policy taking effect starting midnight EST, with effect from April 5. The US imposed sweeping tariffs on multiple trade partners, with rates as high as 49% on Cambodia, 36% on Thailand, and 34% on China.

The European Union faces a 20% tariff.

Even allies like Israel (17%) and the UK (10%) aren't exempt. Switzerland faces a 31% tariff, and Vietnam has been marked for a 46% levy. The higher-than-baseline tariffs will take effect from April 9.