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Trump’s tariffs slam global markets in the biggest blow since the pandemic hit in 2020

Some US$2.5 trillion was wiped out overnight in US markets after the S&P 500 and Nasdaq 100 sank by about 5 per cent

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A man walks past an electronic board showing the Nikkei 225 Index in Tokyo on April 4, 2025. Photo: AFP
Associated PressandBloomberg

Asian shares slid further on Friday after President Donald Trump’s tariffs sent shudders through financial markets at a level of shock unseen since the Covid-19 pandemic pummelled global markets in 2020.

Tokyo’s Nikkei 225 sank 4.3 per cent, while South Korea’s Kospi Index tumbled 1.8 per cent. The two US allies said they were focused on negotiating lower tariffs with Trump’s administration. In Australia, the S&P/ASX 200 Index dropped 2.2 per cent.

Markets in mainland China, Taiwan, Hong Kong and Indonesia were closed for public holidays, limiting the scope of Friday’s sell-off.

Everything from crude oil to Big Tech stocks to the value of the US dollar against major currencies has fallen. Even gold, a traditional safe haven that recently hit record highs, retreated after Trump announced his “Liberation Day” tariff package, which economists say could weaken economic growth and inflame inflation.

In other trading on Friday, the dollar weakened to 145.39 Japanese yen from 146.06. The yen is often used as a refuge in uncertain times, while Trump’s policies are meant in part to weaken the US currency to make goods made in the US more competitive in overseas markets. The euro strengthened to US$1.1095 from US$1.1055.

About US$2.5 trillion was wiped out from US stocks after the S&P 500 plunged 4.9 per cent and the Nasdaq 100 slumped 5.5 per cent Thursday, the biggest drop since 2020 for each. Yields on the 10-year US government bonds hovered around the closely watched 4 per cent mark.

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