China says ‘market has spoken’ after US tariffs spark selloff | The Business Standard
What’s Happening in Asia?
In the last 24 hours, Asian stock markets have taken a brutal hit, triggered by the latest round of US tariffs imposed by President Donald Trump. And no, it’s not just a minor dip—Japan’s Nikkei 225 dropped 6.3%, while Hong Kong’s Hang Seng nosedived a whopping 9.8%.
Even major banking stocks like HSBC and Standard Chartered, listed in Hong Kong, saw double-digit losses. Taiwan’s key electronics players—TSMC and Foxconn—saw shares fall close to 10%. That’s a massive blow considering they’re integral to global tech supply chains.
So, what’s fueling this meltdown?
Trump’s Take: “Sometimes You Have to Take Medicine”
Speaking to reporters on Air Force One, Trump doubled down on his tariff policy, calling it “medicine” for a broken global trade system. According to him, “Lots of countries are dying to make a deal.”
But many investors aren’t buying it. As hedge fund titan Bill Ackman warned, these moves could lead to an “economic nuclear winter.” He’s urging a 90-day pause to ease business anxiety and restore confidence.
Why Is Asia Feeling It the Hardest?
Here’s the thing—Asia is the world’s manufacturing hub, especially for electronics. Taiwan, for instance, produces the microchips used in your iPhone, smart TVs, and laptops. These parts get shipped to China for assembly, then exported to the US. So, even if chips are technically exempt from tariffs, the disruption in the chain hurts everyone involved.
That’s why Taiwan’s President Lai Ching-te has opted to remove all tariffs on US imports, choosing cooperation over confrontation.
Meanwhile, leaders in Japan and South Korea are scrambling to soften the economic hit. Japan’s Prime Minister even announced emergency funding for affected businesses.
Top Countries Hit by US “Reciprocal” Tariffs:
- China: 54%
- Vietnam: 46%
- Cambodia: 49%
- Thailand: 36%
- Japan: 24%
- EU: 20%
- Taiwan: 32%
- South Africa: 30%
Could This Trigger a Global Recession?
According to BBC’s Asia Business Correspondent Mariko Oi, this is one of the worst regional sell-offs in two decades. Investors aren’t just spooked about Asia—they’re worried about a full-blown global recession.
Remember how things went down in 2008? Or how COVID sent markets crashing? The fear is that this round of tariffs could be the trigger for the next big economic downturn.
And it’s not just speculation. Auto manufacturers in Japan are already reporting major losses, thanks to a 25% tariff on vehicle imports into the US. Combine that with collapsing banking shares, and the ripple effect could be massive.
Investor Tip: Watch the US futures market closely. Early signs point to a major drop on Wall Street when it opens.
Can These Tariffs Be Rolled Back?
That’s the billion-dollar question.
More than 50 countries have reached out to Washington to discuss trade since the April 3 announcement. Countries like India, Vietnam, and Israel are all asking for negotiations instead of retaliation.
India, for instance, is considering cutting tariffs on US goods to protect its own export economy. And Vietnam, which got hit with a staggering 46% tariff, was one of the first to speak directly with Trump to seek a delay.
The takeaway? Everyone’s trying to talk—but no one knows if Washington’s listening.
What Does This Mean for You?
Even if you’re not an investor or a CEO, these shifts affect all of us. Prices on electronics, cars, and even groceries could rise if supply chains continue to suffer. Businesses might pull back on hiring. Small exporters may face tough times. And yes, that smartphone upgrade might just get more expensive.
Wrapping It Up
So, what’s the bottom line? Markets hate uncertainty, and Trump’s tariffs have added a whole new layer of it. Whether this is truly the “medicine” needed—or a misdiagnosis—remains to be seen.
But one thing is crystal clear: the world is watching, nervously.
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