Asian stock markets experienced a sharp sell-off on April 3, 2025, following U.S. President Donald Trump's announcement of reciprocal tariffs targeting multiple countries, including India. This move heightened global economic uncertainty and triggered widespread declines:

Japan's Nikkei 225 fell by 2.69%, Hong Kong's Hang Seng dropped 1.80%, and South Korea's KOSPI declined by 1.3%.

U.S. stock futures also showed distress, with Dow Jones Futures down by 1.78%, signaling broader market unease.

Indian stock futures reflected the global sentiment, with Gift Nifty futures falling by 1.11%, suggesting a weak opening for Indian markets.

Experts predict significant economic strain due to these tariffs. Ajay Bagga, a banking and market analyst, highlighted risks such as reduced exports, pressure on margins, and capital outflows from emerging markets as investors seek safe havens like gold and the Japanese yen. He also warned of potential currency depreciation by China in response to the tariffs, which could exacerbate market declines.

The tariffs include a steep 26% levy on Indian exports to the U.S., alongside broader measures such as a 10% blanket tariff on imports into the U.S., effective April 5. Countries like Thailand, Malaysia, and China face even higher levies on certain goods.

Market participants are closely monitoring developments as fears of escalating trade tensions loom large, threatening further volatility across global financial markets.

ANI