Asian Markets in FREEFALL: Trump's Trade War Unleashes Decades-Worst Plunge!

Asian stock markets experienced their most significant drop in decades following former US President Donald Trump's imposition of new tariffs. From Tokyo to Sydney, Shanghai to Hong Kong, key indices plummeted, sparking fears of a global economic downturn.

Key Highlights:

• Historic Plunge: The Shanghai Composite at one point fell by more than 8%, Hong Kong's Hang Seng dropped more than 13%, and Japan's Nikkei 225 closed down by 7.8%.
• Tariff Impact: The tariffs, ranging from 10% to 46%, target numerous countries, including major Asian manufacturing hubs.
• Recession Fears: Analysts are raising concerns that the trade war could trigger a recession in the United States, further impacting Asian exports.
• Global Market Rout: The Asian slump follows significant declines in US and European markets, with trillions of dollars wiped off global stock values.

Asian economies, heavily reliant on exports to the US, are particularly vulnerable. Countries like Vietnam, Thailand, and China face substantial tariffs, while others like Singapore and Australia already have baseline tariffs in effect.

Qian Wang, Asia Pacific chief economist at Vanguard, noted that Asia is bearing the brunt of the US tariff hike and that a new regime of higher tariffs is here to stay.

"Asia is likely to feel a disproportionate brunt of this turmoil because Asia sends more exports to the US than to other markets," said Frank Lavin, former undersecretary for international trade at the US Department of Commerce.

The situation is compounded by China's retaliatory tariffs and revised recession forecasts from major financial institutions. Goldman Sachs now estimates a 45% chance of a US recession within the next 12 months, while JPMorgan sees a 60% chance of a US and global economic downturn.

The tariffs are expected to negatively impact small, open economies in both the short and long term. Countries like Bangladesh, heavily reliant on garment exports to the US, face significant challenges due to the new tariffs. The global stock market rout looks set to continue.