Global Markets React to New Tariffs as Asia and Europe Face Decline

Asian and European markets experienced significant declines as new US tariffs on imports took effect. Japan's Nikkei 225 and Hong Kong's Hang Seng were among those hit hard. President Trump's trade measures have created uncertainty, affecting global financial markets and prompting responses from countries like China.

Asian and European shares experienced notable declines on Wednesday, driven by the latest US tariffs which included a hefty 104 per cent levy on Chinese imports. Japan's Nikkei 225 plunged over 5 per cent, while other Asian markets followed suit, reflecting widespread investor unease over the escalating trade conflict.

The downturn extended to European indexes, with Germany's DAX, Paris's CAC 40, and Britain's FTSE 100 all registering losses exceeding 2 per cent. The financial turbulence highlights the global uncertainty surrounding President Trump's aggressive tariff policies, as countries brace for potential economic repercussions.

China pledged to take strong measures to protect its trade rights but remained vague on specifics. Meanwhile, South Korea unveiled a 3 trillion won emergency funding initiative to support its automobile industry, a sector heavily impacted by US tariffs. Economists warn of a recession should the trade tensions persist.

(With inputs from agencies.)