Asian markets crash as Donald Trump’s tariff war sparks global selloff

Asian stock markets tumbled Monday as U.S. futures forecast sharp losses on Wall Street, sparked by President Donald Trump’s aggressive tariff policies. While several nations scrambled to seek compromise, Trump showed little sign of backing down.

Speaking aboard Air Force One on Sunday, Trump denied deliberately triggering the market slump, asserting he couldn’t predict market movements and would not strike any trade deals unless America’s deficits were addressed.

“Sometimes medicine is necessary,” he said, referring to the staggering losses—measured in trillions—U.S. companies have suffered since his tariff campaign began.

Over the weekend, Trump claimed that numerous world leaders had approached him, eager to negotiate. “They’re dying to make a deal,” he insisted.

Following last week's close of Asian trading, China announced retaliatory tariffs of 34% on all U.S. imports, to take effect April 10. The news hit markets hard when trading resumed Monday.

The Nikkei 225 in Japan dropped a staggering 6.5%, Taiwan’s index plunged nearly 10%, and Singapore’s was down 8.5% early Monday.

On Wall Street, futures contracts for key U.S. indices pointed sharply downward Sunday night. Meanwhile, U.S. crude oil prices dipped below $60 per barrel—a level not seen since April 2021.

Allies Caught in the Crossfire

Israeli Prime Minister Benjamin Netanyahu, whose country faces 17% tariffs despite close ties with Washington, is flying to the U.S. for high-stakes talks with Trump.

British Prime Minister Keir Starmer wrote in a weekend op-ed that the old global order had collapsed. “The world as we knew it has gone,” he warned, emphasizing that new relationships would now depend on strategic “deals and alliances.”

Trump’s staggered tariff deadlines have allowed limited time for countries to negotiate exemptions. However, the president has maintained a firm stance, warning against retaliation.

White House National Economic Council Director Kevin Hassett told ABC’s This Week that more than 50 nations had reached out to initiate negotiations, citing data from the U.S. Trade Representative’s office.

Vietnam, one of the U.S.'s largest export partners in the first quarter, has formally requested a 45-day delay on the recently announced 46% tariffs.

“These countries know they’re absorbing much of the tariff impact,” Hassett explained, arguing the duties wouldn’t result in significant price hikes for American consumers. “I don’t think you’ll see a major effect on the U.S. consumer,” he added.

Market Carnage Continues

Treasury Secretary Scott Bessent echoed the figure of 50 nations reaching out, but made clear Trump holds the final decision.

“At this point, he has maximum leverage,” Bessent said on NBC’s Meet the Press. “It depends what these countries bring to the table—and whether it’s credible.”

He also pointed out that many countries had acted unfairly for years, and resolving such issues wouldn’t happen “in days or weeks.”

Despite hopes for last-minute talks, markets across Asia continued to suffer. On Sunday, Saudi Arabia’s stock exchange fell 6.78%, marking its worst single-day loss since the COVID-19 crisis.

Former Obama-era economic advisor Larry Summers warned of continued turbulence. “There’s a strong chance we’ll see more market volatility like we did on Thursday and Friday,” he said.

Still, Peter Navarro, Trump’s key trade advisor, urged investors to stay calm. “You can’t lose money unless you sell,” he said, predicting the market would soon deliver “the biggest boom we’ve ever seen.”

Russia Left Out

Notably, Russia was excluded from the latest round of U.S. tariffs. Hassett explained that ongoing discussions over the Ukraine conflict played a role in its exemption. A White House official added Wednesday that trade with Russia was already minimal due to sanctions.

Trump has long argued that America has been exploited by trading partners and views tariffs as a tool to level the playing field.

“Someday people will realize that tariffs, for the United States of America, are a very beautiful thing!” he wrote Sunday on Truth Social.

Still, many economists caution that tariffs often burden consumers through higher prices, and warn that the long-term impact may hit Americans harder than expected.