Last week, former U.S. President Donald Trump announced additional tariffs that sent shockwaves through global financial markets. This move, one of the most radical actions in the escalating trade war, has had immediate and far-reaching consequences beyond the United States.
American companies, particularly tech giants heavily reliant on Asian manufacturers for semiconductors and electronic components, were among the hardest hit. Production costs surged by 40–50% almost overnight, triggering a sharp drop in valuations. The so-called “Magnificent Seven” tech firms collectively lost trillions of dollars, while the total loss in U.S. markets exceeded $6 trillion. These figures sparked significant concern across the American financial landscape.
The global ramifications of this policy became even more apparent when Asian markets reopened at the start of the week. Since many Asian countries had public holidays on Friday—the day the tariffs were announced—their reactions were delayed. On Monday, however, stock markets across Asia plummeted.
Hong Kong experienced the most dramatic fall, with the Hang Seng Index dropping 13.22%—the sharpest decline since the 1997 Asian Financial Crisis, and one of the largest in its history. Mainland China’s Shanghai Composite Index fell by 7.3%, while Taiwan’s TAIEX opened the week down 9.7%. Japan’s Nikkei 225 also suffered a 9% loss.
The shockwaves extended into Europe as well. Germany’s DAX index fell by 9%, and the UK’s FTSE 100 started the new week with a 5% loss.
The outlook remains uncertain. But one thing is clear: Trump’s tariff decision has disrupted the global economic order. Talk of a global financial crisis is growing louder, and even the U.S. itself is not immune. In fact, it might be the first domino to fall in what could become a global economic chain reaction.