Trump’s words caused Asian markets to fall
11 March 13:37
Asian stock markets plunged on Tuesday amid growing fears of a serious downturn in the US economy, the world’s largest. This happened after US President Donald Trump intensified the tariff war with major trading partners, Komersant ukrainskyi reports citing CNN.
Investors’ concerns grew after Trump refused to rule out the possibility of a recession in the United States on Sunday. This uncertainty has already hit Wall Street and has now spread to the Asia-Pacific markets.
The Asian crash
Japan’s Nikkei 225 stock index fell by almost 3% during morning trading, but by the end of the session it was able to partially recover, closing down 0.6%. South Korea’s KOSPI index lost up to 2.5% during trading and ended the day down 1.3%. Taiwan’s TAIEX dropped by almost 3%, and by the end of the session fell by 1.7%. Australia’s S&P/ASX 200 closed down 1%, while Hong Kong’s Hang Seng Index ended the day unchanged.
Technology stocks suffered significant losses. Japanese giants Sony and Hitachi fell by more than 4.5% in the morning, and by the end of trading, their shares had fallen by more than 5%. Softbank Corporation lost 4.3% on Tuesday.
Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest manufacturer of custom chips, ended trading down more than 3%. Apple’s supplier, Foxconn, also fell by almost 3%. South Korean Samsung lost more than 2% during the session, but closed unchanged.
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The reason for the collapse is Trump’s words
The markets fell after Trump refused to comment on the likelihood of a recession in the United States. During the broadcast of “Sunday Morning Futures With Maria Bartiromo” on Fox News, he was asked whether he expects a recession this year, and he replied:
“I don’t like to make those kinds of predictions.”
At the same time, he acknowledged that “there is going to be a period of transition.”
All is (almost) calm in the West
The situation on European markets was calmer. The pan-European Stoxx Europe 600 index was down 0.1% by 11:48 a.m. Kyiv time. At the same time, the German DAX and the French CAC rose by 0.6% and 0.5%, respectively, while the British FTSE 100 remained unchanged.
Futures on US indices indicated a possible improvement in the situation. By 11:48 a.m. Kyiv time, Dow Jones futures were up 0.3%, S&P 500 by 0.4%, and NASDAQ by 0.5%.
On Monday, the Nasdaq suffered its biggest one-day drop since September 2022, while the Dow and S&P 500 ended the day with their worst performance in 2025. The Dow closed down 890 points (-2.08%), the S&P 500 fell 2.7%, and the high-tech Nasdaq Composite lost 4%, driven in particular by a drop in Tesla shares.
All the gains of the three major US indices accumulated since Trump’s election victory last year have been completely offset.
“The two main factors affecting the markets are concerns about US economic growth and German (European) fiscal policy,”
– Mohit Kumar, senior economist at Jefferies, said in a research note on Tuesday.
Trump’s trade wars
Initially, investors on Wall Street welcomed Trump’s election to a second term, but since his inauguration, markets have been experiencing periods of significant turbulence. This is due to the fact that Trump has aggravated trade relations by imposing tariffs on Canada, Mexico, and China, as well as cutting government spending.
In early February, he threatened to impose a 25% tariff on all imported goods from Mexico and most goods from Canada, but postponed this decision until early next month.
Last week, Trump doubled tariffs on all Chinese imports to 20%. In response, China announced a new package of tariffs, in particular on agricultural products from the United States, which came into effect on Monday.
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