Stock Markets Are Collapsing Due to Trump's Tariffs

The new import tariffs imposed by Trump are starting to collapse global stock markets. In particular, significant losses are being observed in the Australian and Asian markets.

This morning, on Monday, after the market opened, the indexes of Asian and Australian stock markets started to drop sharply. The reason for this is the new tariffs imposed by U.S. President Donald Trump.

Specifically, the Australian stock market index, S&P/ASX 200, showed an average decline of 6.4% at the beginning of trading, before stabilizing at that level. The South Korean stock market index, KOSPI, fell by more than 5% as trading began. Japan's Nikkei 225 index also declined.

Especially, shares of Japanese car corporations started to depreciate. This is because the North American market, particularly the U.S., is a crucial market for Japanese cars. Trump's 25% tariff on cars and car parts manufactured outside of the U.S. now makes this huge market inefficient for Japanese vehicles. As exports decrease, revenues also drop. For this reason, shareholders of car companies are trying to sell their shares before prices fall further.

This is leading to further depreciation of these securities, causing their prices to drop sharply. If panic sets in in the near future, the value of these securities may disappear entirely. For example, after the market opened today, Honda's stock fell nearly 8%, Nissan's stock lost 10%, and Mitsubishi Motors' stock also dropped by about 10%.

Additionally, declines were observed in the stock markets of Taiwan, Shanghai, and Hong Kong. Hong Kong's Hang Seng index dropped about 9% half an hour after opening, Shanghai's SSE Composite Index fell by 6%, and Taiwan's TAIEX index decreased by 9.6%.

Since the announcement of the new tariffs, U.S. stock market indexes have started to decline. Specifically, the S&P 500 index fell by 3.2%, and the Nasdaq and Dow Jones indexes dropped by 4%.

It is worth noting that earlier, Trump had imposed a 10% tariff on all countries.

Abdulloh Sayyid