Asian markets experienced a dramatic decline on Monday as U.S. futures indicated significant losses on Wall Street due to Donald Trump’s severe tariffs, even as countries sought to negotiate with the resolute president.
Trump dismissed accusations on Sunday, asserting that he was not intentionally causing a market selloff and claimed he could not predict market reactions. He emphasized that he would not agree to any deals with other countries until trade deficits were addressed. “Sometimes you have to take medicine to fix something,” he remarked, referring to the market distress that has led to trillions of dollars in losses for U.S. companies since his tariff campaign began.
Speaking to reporters aboard Air Force One, he claimed to have engaged with international leaders over the weekend, stating, “they’re dying to make a deal.”
On Friday, China announced its retaliation against the U.S., declaring it would impose 34% tariffs on all U.S. goods starting April 10, following the close of Asian markets the previous week.
The escalating trade war prompted a severe sell-off in Asian stocks when trading resumed. In early trading on Monday, Japan’s Nikkei 225 plunged by an astonishing 6.5%, while stocks in Taiwan fell nearly 10% and Singapore’s markets decreased by 8.5%.
Futures contracts for major New York Stock Exchange boards showed significant declines on Sunday, indicating further declines for Wall Street stocks when the markets reopened, while U.S. oil prices dropped below $60 a barrel for the first time since April 2021.
‘Deals and Alliances’
Israeli Prime Minister Benjamin Netanyahu, whose country is facing 17% tariffs despite its close alliance with Washington, is set to meet with Trump on Monday to discuss the tariffs.
Britain’s Prime Minister Keir Starmer warned in a newspaper opinion piece that “the world as we knew it has gone,” suggesting that the future will increasingly rely on “deals and alliances.”
Trump’s staggered deadlines are providing breathing room for some countries to negotiate, even as he maintains a firm stance and his administration cautions against retaliation. “More than 50 countries have reached out to the president to begin negotiations,” said Kevin Hassett, head of the White House National Economic Council, speaking on ABC’s This Week on Sunday, referencing the U.S. Trade Representative.
Vietnam, a major manufacturing hub that identified the U.S. as its primary export market in the first quarter, has already requested a delay of at least 45 days on the hefty 46% tariffs imposed by Trump. Hassett indicated that countries pursuing compromises are aware that they would bear the brunt of the tariffs as the administration insists that these duties won’t lead to significant price hikes in the U.S. “I don’t think that you’re going to see a big effect on the consumer in the U.S.,” he said.
‘Markets Bloodbath’
Treasury Secretary Scott Bessent also stated on NBC’s Meet the Press that 50 countries had reached out. However, when asked if Trump would negotiate, Bessent remarked, “I think that’s a decision for President Trump.” He added, “At this moment he’s created maximum leverage for himself… we will have to see what the countries offer and whether it’s believable.” Bessent acknowledged that other nations have been “bad actors for a long time,” which complicates rapid negotiations.
Despite hopes for talks to prevent severe economic damage, Asian markets continued to plummet into the new trading week. In Saudi Arabia, where markets were open on Sunday, the bourse dropped by 6.78%, marking the steepest daily loss since the COVID-19 pandemic, according to state media.
Larry Summers, former Director of the National Economic Council under President Barack Obama, warned that “there is a very good chance there will be more turbulence in markets like we saw on Thursday and Friday.”
Peter Navarro, Trump’s tariff adviser, countered the rising anxiety, assuring investors that “you can’t lose money unless you sell,” and predicted “the biggest boom in the stock market we’ve ever seen.”
Russia has so far been exempt from the latest tariffs. Hassett attributed this exclusion to discussions regarding Moscow’s invasion of Ukraine. On Wednesday, a White House official indicated that Russia’s omission was due to negligible trade levels resulting from sanctions.
Trump has consistently argued that countries exporting goods to the United States are profiting at the expense of Americans and views tariffs as a method of rectifying this situation. “Someday people will realize that tariffs, for the United States of America, are a very beautiful thing!” he posted on Truth Social on Sunday. However, many economists caution that tariffs often lead to increased prices for consumers.
