Tag: impact

Asian Markets In Red As US Tariffs Trigger Global Selloff

Asian stock markets plunged on Monday as the economic shock from sweeping new U.S. tariffs sent tremors across global financial markets. Investors across the region reacted with alarm, fearing that an escalating trade war could tip the world’s largest economy into a recession — with serious fallout for export-driven nations in Asia.

Markets in Tokyo, Shanghai, Hong Kong, and Sydney opened sharply lower, with widespread losses wiping out billions in market value. “It’s a bloodbath out there,” remarked one analyst, reflecting the scale of the rout.

By midday, Japan’s Nikkei 225 had shed 6%, Australia’s ASX 200 was down 4%, and South Korea’s Kospi fell 4.7%. Mainland China, Hong Kong, and Taiwan saw even sharper declines, as investors returned from public holidays and reacted to last Friday’s global downturn. The Shanghai Composite dropped more than 6%, while the Hang Seng and Taiwan Weighted Index plunged by around 10%.

The market chaos follows a fresh round of tariffs announced by President Donald Trump, including sweeping 10% duties on goods from a wide range of countries, with some targeted rates as high as 46%. The tariffs hit key trading partners like China, the European Union, Vietnam, and Bangladesh especially hard.

“Tariffs are stoking concerns about inflation and the real risk of a U.S. recession,” said Julia Lee of FTSE Russell. “The knock-on effects for global markets, especially in Asia, are becoming harder to ignore.”

Wall Street has taken notice. Goldman Sachs raised the probability of a U.S. recession in the next 12 months to 45%, up from 35%, citing weaker growth prospects. JPMorgan went further, projecting a 60% chance of both a U.S. and global recession.

The stakes are high for Asia, where economies depend heavily on exports to the U.S. “Asia is bearing the brunt of these tariff hikes,” said Qian Wang, Chief Economist for Asia Pacific at Vanguard. “Smaller, open economies will face both short- and long-term challenges.”

Vietnam and Bangladesh are among the most exposed. The U.S. imposed new tariffs of 46% on Vietnamese goods and 37% on imports from Bangladesh — two key apparel suppliers to American brands like Nike and Lululemon. According to the Bangladesh Garment Manufacturers and Exporters Association, the country ships $8.4 billion in garments to the U.S. each year.

“Asia’s heavy reliance on U.S. markets makes it particularly vulnerable,” said Frank Lavin, a former U.S. Undersecretary for International Trade. “The region is feeling the sharp end of the trade dispute.”

Markets in the U.S. also closed last week with heavy losses after China responded with its own tariff measures. The S&P 500 slumped nearly 6%, while the Dow and Nasdaq also dropped more than 5%, marking the worst week for U.S. stocks since 2020. European markets were dragged down as well, with the FTSE 100 falling almost 5% — its steepest drop in five years — and similar declines seen in Germany and France.

With U.S. futures pointing to another tough session, investors around the world remain on edge. “There’s no clear end in sight to this tariff war,” Lee warned. “Markets are bracing for more pain.”

Since the U.S. announced its sweeping trade measures, global equities have lost trillions in value — underscoring the far-reaching economic risks of protectionism in an interconnected world.

Wary India Alerts Authorities of Possible Dumping of Cheaper Chinese Goods Post-US Tariff Surge

India has intensified its monitoring of imports from China to guard against a potential flood of cheap goods into its market, following the United States’ dramatic tariff escalation on Chinese exports.

The U.S. hike—part of a sweeping trade overhaul unveiled by former President Donald Trump—has raised tariffs on Chinese goods by an additional 34 per cent, taking the total duty to 54 per cent. The move has significantly narrowed China’s access to the world’s largest consumer market, prompting concerns that surplus goods may be diverted to other major economies, including India, at dumped prices.

Commerce Secretary Sunil Barthwal has reportedly convened several high-level meetings to assess the situation. “We are actively engaging with industry stakeholders to get a comprehensive understanding of potential risks and are developing a strategic response,” a senior government official told IANS.

The Commerce Ministry has already been vigilant in sectors such as steel, where earlier U.S. tariffs had led to a surge in Chinese exports to other countries. Officials have now expanded the scope of surveillance to electronics, textiles, chemicals, and other sensitive sectors that could be vulnerable to dumping.

China’s Potential Redirection of Exports

With Chinese exporters now facing steep barriers in the U.S., Indian authorities fear that Beijing may attempt to offload its excess inventory at artificially low prices to maintain factory output—an act considered dumping under global trade norms.

“This is a classic case where trade diversion could lead to market distortions. We must ensure that Chinese overcapacity does not destabilize Indian industries,” the official said.

China, meanwhile, has retaliated against the U.S. tariffs with countermeasures including 34 per cent duties on all American goods, restrictions on rare earth metal exports, and sanctions on select U.S. defence-related companies.

India’s own exports to the U.S. account for only 4 per cent of its GDP, and the new 27 per cent U.S. tariff on Indian goods is expected to have a “limited impact,” according to an SBI Research report. In fact, the relatively lower tariff rate on Indian goods—compared to 34 per cent on China, 36 per cent on Thailand, and 46 per cent on Vietnam—may boost India’s long-term competitiveness in global markets.

The report noted that in electronics, where China now faces U.S. tariffs ranging from 54 per cent to 79 per cent, India could emerge as a preferred export partner. India shipped $9 billion worth of electronics to the U.S. between April and December in FY25, making it the country’s top export sector to the U.S.

However, short-term challenges remain, especially in textiles, where higher tariffs on competitors like Bangladesh, China, and Vietnam could initially lead to demand compression. India exported $7 billion worth of textiles to the U.S. in the same period, and while the sector may experience a temporary setback, experts believe it stands to gain in the medium to long term.

As global trade dynamics shift rapidly, India’s proactive stance underscores the need to protect domestic industries from unfair competition. Government agencies are expected to increase customs checks, evaluate import pricing patterns, and, if needed, initiate anti-dumping investigations.

Industry bodies have welcomed the government’s vigilance, emphasizing the importance of balancing open trade with protective mechanisms. “We support global trade but not at the cost of India’s manufacturing ecosystem,” said a representative from a leading industry federation.

As China recalibrates its export strategies under growing global pressure, India remains on high alert—not just to shield its markets, but potentially to seize emerging trade opportunities.

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