US Tariffs Trigger Global Market Decline, Asian Markets Show Resilience

COLOMBO (News 1st); US President Donald Trump recently announced two significant tariff decisions, which are expected to have far-reaching impacts on global trade and economic stability.

On April 5, the President declared that a 10% tariff would be imposed on all goods imported into the United States from every country. 

Additionally, starting April 9, tariffs ranging from 10% to 60% will be applied to goods from several other countries. 

The US President justified these measures as necessary to address trade imbalances and ensure fair competition.

In a notable move, the President imposed a 34% tariff on Chinese goods, citing the need to rectify the trade disparities between the two nations. 

China, which had already been subjected to various tariffs and sanctions by the US, responded immediately by imposing a reciprocal 34% tariff on American goods.

The US President took to the social media platform Truth Social to address China's response, stating, “If China does not withdraw its 34% increase above their already long term trading abuses by tomorrow, April 8th, 2025, the United States will impose additional tariffs on China of 50%, effective April 9th,”

China’s government says it will “fight to the end” if the US continues to escalate the trade war, after Donald Trump threatened huge additional tariffs in response to China’s retaliatory measures.

On Tuesday, China’s commerce ministry accused the US of “blackmail” and said the US president’s threats of additional 50% tariffs if Beijing did not reverse its own 34% reciprocal tariff were a “mistake on top of a mistake”.

It vowed to “resolutely take countermeasures”, adding: “China will fight to the end if the US side is bent on going down the wrong path.”.

The escalating trade tensions have had immediate effects on the global economy. 

Major stock markets around the world experienced significant declines, with leading indices such as the S&P 500 and FTSE 100 reporting substantial drops. 

The S&P 500 index fell by nearly 20% from its recent peak, while the FTSE 100 saw a 7% decline.

Despite the overall downturn, some Asian markets showed resilience. 

Japan's Nikkei 225 index reported a 6% increase, and Hong Kong's Hang Seng index grew by 1.7%. 

The Colombo Stock Exchange also saw positive growth, with the All Share Price Index rising by 3.19% and the S&P SL20 index increasing by 4.54%.

Economic analysts attribute the growth in Asian markets to China's swift response to the US tariffs. 

Meanwhile, the US Treasury Secretary announced that the White House is prepared to hold meaningful discussions with over 50 countries that have responded positively to the tariffs.