Nikkei Plunges as Trump's Tariffs Send Shockwaves Through Global Markets
So, let’s talk about what’s making big waves in the markets right now — and it’s not just another blip. The Nikkei 225, Japan’s primary stock market index, just experienced a jaw-dropping drop of over 8% right after the market opened. That’s its biggest one-day loss in years and it pushed the index below the 33,000 mark — a level we hadn’t seen since August last year. This isn’t an isolated event either. It’s part of a global domino effect triggered by none other than former U.S. President Donald Trump’s latest trade war move.
Trump has just slapped a 24% tariff across the board on Japan — yes, on Japan, a long-standing ally with whom the U.S. has a mutual defense treaty. This move, which takes effect later this week, has left investors reeling, not only in Asia but around the world. The reaction has been brutal. The broader Topix index in Japan tumbled over 7.5%. South Korea’s Kospi dropped nearly 5% and had to trigger a circuit breaker to halt trading. Taiwan’s Taiex? That plummeted more than 9.7%, forcing trading halts on giants like TSMC and Foxconn.
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And this all comes hot on the heels of Wall Street’s worst two-day stretch in five years. Over $5.4 trillion in market value was wiped out in just two sessions. U.S. stock futures nosedived again Sunday night, signaling even more turbulence ahead. It’s not just about Japan — China hit back hard on Friday with a 34% tariff on all U.S. goods, so now we’re staring at a rapidly escalating trade war.
Japan’s Prime Minister, Shigeru Ishiba, is trying to manage the fallout. He’s pushing for negotiations with Trump but admits results won’t come overnight. Meanwhile, the Japanese government is scrambling to support its domestic industries and protect jobs. It’s clear that this isn’t just about market charts and numbers — it’s about livelihoods and long-term economic stability.
And when reporters asked Trump about all this chaos, his response? He brushed off any blame for crashing the markets, saying he couldn’t predict where things would go but insisted the U.S. was “stronger than ever.” Whether that confidence will calm investors remains to be seen.
The bottom line? This isn't just another trade spat. This is a full-blown economic quake shaking markets across continents — and it’s far from over.
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