Asia reels from massive selloffs, Wall Street braced for more losses as over 50 nations rush for trade talks with defiant US President Trump.
April 7, 2025: Tokyo:
Asian stock markets plunged sharply on Monday, following the ripple effects of US President Donald Trump’s aggressive new tariff regime, with global economies scrambling to strike deals or seek relief.
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After China’s tit-for-tat announcement of 34% tariffs on all US imports, market bloodbaths began to unfold across the Asia-Pacific region when trading resumed.
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- Japan’s Nikkei 225 dropped 6.5%,
- Taiwan fell nearly 10%,
- Singapore slumped 8.5% in early trade.
Even before US markets reopened, futures for Wall Street indexes tumbled, suggesting a brutal session ahead for American investors. US oil prices also fell below $60 per barrel, the lowest since April 2021.
Trump: “Sometimes You Have to Take Medicine”
President Trump, speaking aboard Air Force One, brushed off the market chaos, saying,
“Sometimes you have to take medicine to fix something.”
He insisted he wasn’t aiming for a selloff, but remained firm on his conditions:
“No deal unless trade deficits are solved.”
The tariffs — up to 46% on imports from Vietnam and 17% on Israeli goods, despite their close ties — have sparked a flurry of diplomatic outreach.
50+ Countries Seek Talks
According to National Economic Council Director Kevin Hassett and Treasury Secretary Scott Bessent, over 50 countries have reached out for trade negotiations, hoping to avoid the harshest consequences of Trump’s sweeping duties.
“They understand they bear a lot of the tariffs,” Hassett said on ABC’s This Week, downplaying concerns about rising US consumer prices.
Vietnam has reportedly requested a 45-day delay in implementation of its tariffs. Meanwhile, Israeli PM Benjamin Netanyahu is flying to Washington for emergency talks.
Europe and Asia React
While Europe prepares its own set of retaliatory duties, many Asian nations are opting for diplomacy. However, market sentiment continues to sour.
- Saudi Arabia’s stock market dropped 6.78% on Sunday, its worst single-day loss since COVID-19.
Former Obama advisor Larry Summers warned of “more turbulence” in the days ahead, while Trump advisor Peter Navarro told investors:
“You can’t lose money unless you sell,” predicting “the biggest boom in the stock market we’ve ever seen.”
Despite reassurances, fears of a Black Monday scenario have gripped analysts and investors worldwide.
Trump Doubles Down on Tariffs
Trump reiterated his long-held belief that tariffs are the solution to America’s trade imbalance, posting on Truth Social:
“Some day people will realize that Tariffs, for the United States of America, are a very beautiful thing!”
But most economists remain skeptical. Many warn that tariffs will be passed on to consumers, potentially pushing prices higher in the US, even if the administration claims otherwise.
As Russia avoids the latest wave of tariffs—allegedly due to minimal trade flows and ongoing Ukraine-related negotiations—other major economies are left scrambling to protect their exports and calm investor panic.
With $6 trillion already wiped out from US markets, global leaders now face the urgent challenge of navigating a deeply fractured trade landscape—and temper Trump’s unpredictable economic firepower.
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Donald Trump, global markets, stock market crash, US tariffs, Trump trade war, Asia stocks, Nikkei 225, China retaliation, global economy, market panic, tariffs 2025, Trump administration, Kevin Hassett, Scott Bessent, Wall Street, consumer prices