BANGKOK, Thailand – Global markets took a hit as investors reacted negatively to U.S. President Donald Trump’s recent decisions on tariffs. Stock benchmarks in Japan, Hong Kong, and South Korea plummeted over 2% following Trump’s announcement of increased tariffs on Chinese products to 20% and the implementation of 25% tariffs on imports from Mexico and Canada.

In Europe, shares also experienced a decline, with Germany’s DAX falling 0.4% and France’s CAC 40 shedding 0.4%. Meanwhile, Britain’s FTSE 100 edged slightly lower. Despite this, U.S. futures showed some promise, with S&P 500 and Dow Jones Industrial Average contracts rising by 0.3%.

The Asian trading session saw Tokyo’s Nikkei 225 index dropping by 2.9%, driven by a significant decrease in technology company stocks. Hong Kong’s Hang Seng index also experienced a 3.3% decline, while the Shanghai Composite index lost 2%.

Trump’s decision to proceed with the tariffs on imports from Canada and Mexico and increase tariffs on Chinese products sparked backlash from China’s Commerce Ministry, citing violations of international trade rules. This move was met with concerns about its impact on American companies, consumers, and the global industrial chain.

The uncertainty surrounding tariffs has led to market volatility and unease among U.S. households about the economy. Consumer confidence is crucial as strong spending has been a key driver of economic growth. The Federal Reserve also faces challenges in addressing a slowing economy and rising inflation simultaneously.

Overall, the U.S. economy remains relatively stable, with the latest reports maintaining estimates for economic performance in the last quarter of 2024. However, concerns about inflation and unemployment persist, exemplified by an increase in the number of U.S. workers applying for unemployment benefits.

In the oil market, U.S. benchmark crude oil prices dropped, while Brent crude, the international standard, also saw a decline. Changes in currency exchange rates showed fluctuations, with the U.S. dollar strengthening against the Japanese yen and the euro.

The ongoing dynamics in global markets reflect the interconnectedness of economies and the impact of policy decisions on financial stability and investor confidence. As uncertainties persist, stakeholders must closely monitor developments to navigate challenges and seize opportunities for growth and resilience in the ever-evolving economic landscape.