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Japan’s Nikkei Sinks to 1.5-Year Low Trailing Global Recession Fears

Japan’s Nikkei share average nosedived on Monday to its lowest level in a year and a half, as growing fears of a global recession triggered by sweeping U.S. tariffs sent investors fleeing from equities—particularly bank and tech stocks.

The Nikkei 225 index dropped as much as 8.8% during the day to hit 30,792.74, its lowest level since October 2023, before closing 7.8% lower at 31,136.58. All 225 constituents of the index ended the day in negative territory. The broader Topix index slumped 7.8%, after earlier falling as much as 9.6%.

The sharp sell-off follows U.S. President Donald Trump’s announcement last week of a sweeping new round of reciprocal tariffs, affecting nearly every country exporting to the United States. Speaking aboard Air Force One on Sunday, Trump described the tariffs—which range from 10% to 50%—as “medicine,” and signaled his willingness to tolerate the market fallout.

“It’s extremely difficult to judge how far this stock market correction will run [but] as long as there exists a lack of clarity around tariffs and each country’s response, the market will remain heavy,” said Maki Sawada, equities strategist at Nomura Securities.

The banking sector bore the brunt of the sell-off. A Topix index of banking shares plummeted as much as 17.3% before closing down 10%. Over the past three sessions, Japanese banks have collectively lost nearly a quarter of their market value, amid concerns that the tariffs could choke off global growth and keep domestic interest rates lower for longer.

“This is a sell-anything-that-has-made-money move,” said Rikki Malik, a portfolio manager at Springboard Capital. “Banks [are] at the forefront of that. However, I think we are close to capitulation and will see a bounce very soon.”

Among major financial stocks, Nomura Holdings tumbled 13.2%, Mizuho Financial Group fell 10.7%, and Mitsubishi UFJ Financial Group dropped 10.4%. The sell-off extended to the tech sector, with Renesas Electronics plunging 16.7%, Sumco Corp. sliding 15.8%, and chip-testing equipment giant Advantest falling 11%.

The losses follow a broader global market rout. Since Trump’s announcement, the Nikkei has fallen 11.6%, while the U.S. S&P 500 has lost 10.6%. Still, some analysts see room for recovery if Washington or other major economies signal flexibility.

“The market currently is only pricing in bad news,” said Sawada. “If there are signs of flexibility on trade policies or the announcement of economic support measures, it’s highly likely we’ll see a bottom form in the market.”

The sharp decline comes as policymakers across Asia scramble to respond to the rapidly evolving trade environment, with countries like Vietnam, Thailand, and Indonesia turning to diplomacy, and others reconsidering their economic forecasts in light of escalating uncertainty.

Consumers Rush to Buy Laptops As US Begins Collecting Trump’s 10% Tariff

US customs authorities began enforcing a sweeping new 10% tariff on imports from dozens of countries early Saturday, marking a seismic shift in global trade policy and intensifying fears of a worldwide economic slowdown.

The levy, announced by former President Donald Trump earlier this week, took effect at 12:01 a.m. ET (0401 GMT) at all U.S. seaports, airports, and customs facilities. The baseline tariff is the centerpiece of Trump’s unilateral overhaul of post-World War Two trade norms, which were built on mutual agreements and negotiated tariffs.

“This is the single biggest trade action of our lifetime,” said Kelly Ann Shaw, a trade lawyer at Hogan Lovells and former White House adviser. Speaking at a Brookings Institution event Thursday, Shaw predicted that the new tariff regime will evolve as countries seek negotiations. “But this is huge. This is a pretty seismic and significant shift in the way that we trade with every country on earth,” she added.

The announcement sent shockwaves through global financial markets, wiping out $5 trillion in market value from S&P 500 companies by Friday’s close—a record two-day loss. The Dow Jones and Nasdaq also suffered steep declines, while commodity prices plunged and investors poured into safe-haven government bonds.

Wall Street’s rout is the steepest since the March 2020 pandemic-driven selloff and has reignited fears of a looming global recession.

Who’s Hit — and Who’s Not

Among the first countries affected are Australia, Britain, Colombia, Argentina, Egypt, and Saudi Arabia, which now face the immediate 10% tariff. A U.S. Customs and Border Protection bulletin issued to shippers initially caused confusion, suggesting no grace period. However, a revised bulletin confirmed a 51-day grace period for goods already in transit before the Saturday deadline. These shipments must arrive in the U.S. by May 27 to avoid the new duty.

The policy includes significant exemptions. Goods such as crude oil, pharmaceuticals, semiconductors, petroleum products, uranium, titanium, and lumber—representing roughly $645 billion in 2024 imports—are excluded from the tariff. Many of these sectors, however, remain under review for possible national security-related tariffs.

Products already covered by separate national security duties—such as steel, aluminum, automobiles, trucks, and auto parts—are also excluded.

Higher Reciprocal Tariffs Coming Next

The 10% baseline tariff is only the first phase. Beginning Wednesday, the administration will implement a set of “reciprocal tariffs” ranging from 11% to 50%, targeting countries based on the duties they impose on U.S. goods.

Under the new schedule:

European Union imports will face a 20% tariff.
Chinese goods will be hit with an additional 34% duty, raising total U.S. tariffs on China to 54%.
Vietnam, which benefited from supply chain shifts away from China during Trump’s first term, will face a 46% tariff. Hanoi has agreed to open discussions with Washington following the announcement.
Canada and Mexico are exempt from the new duties due to existing 25% tariffs tied to the U.S. fentanyl crisis for non-compliant goods under the USMCA rules of origin.

Trump’s move has sparked both praise from protectionist trade advocates and criticism from economists who warn of inflationary pressures and disrupted global supply chains. Analysts say the policy could act as a de facto tax on U.S. consumers and businesses, compounding economic risks at a time of fragile global recovery.

As the U.S. enforces its most aggressive trade action in decades, countries around the world are expected to respond, potentially setting off a new era of retaliatory tariffs and trade realignment.

Warren Buffett Denies Ever Supporting Trump’s Tariffs As Wall Street Suffers $2.5 Billion Loss

Berkshire Hathaway denies Warren Buffett endorsed President Trump’s economic policies, as suggested in a viral video.
The false endorsement claims surfaced after Trump’s tariff announcement led to a $2.5 trillion loss on Wall Street.
Despite market turmoil, Buffett’s year-to-date profit remains at $23.4 billion.

In a strong rebuttal, American multinational Berkshire Hathaway has categorically refuted the authenticity of comments attributed to its Chairman, Warren Buffett, that have been circulating on various social media platforms.

These comments, allegedly made by Buffett, were in relation to the trade tariffs of the United States. The rumors gained momentum after US President Donald Trump’s account on his social media platform, Truth Social, shared a video suggesting that Buffett endorsed the President’s economic policies.

The video suggested that Buffett, the 94-year-old billionaire, lauded President Trump for making the best economic moves seen in more than 50 years in America. The claims about Buffett’s endorsement first appeared on Instagram on March 13 and went viral after Trump announced a series of tariffs. However, Berkshire Hathaway has firmly stated that all such reports are false.

Buffett has been at the helm of Berkshire since 1965. In October of the previous year, the company had clarified that Buffett would not endorse political candidates or investment products. This clarification was issued in response to numerous fraudulent claims suggesting his support.

Impact of Trump’s Tariff Announcement

The false endorsement claims have come at a time when Trump’s tariff announcement on Liberation Day, April 2, has sent shockwaves across global markets, leading to a loss of $2.5 trillion in wealth on Wall Street. This has affected many billionaires, including SpaceX and Tesla CEO Elon Musk, Amazon founder Jeff Bezos, and Meta chief Mark Zuckerberg, who saw their combined wealth plunge.

However, Buffett seems to have weathered the storm. According to the Bloomberg Billionaires Index, Buffett lost $2.57 billion but remains in the green. His year-to-date profit still stands at $23.4 billion.

Meanwhile, Trump has reassured Americans on Truth Social that the US economy would emerge “stronger, bigger, better and more resilient than ever before”. In a separate post, he added that “markets will boom”.

The Role of Social Media in Spreading Misinformation

This incident brings to mind similar instances in the past where public figures have been falsely attributed with statements or endorsements. The advent of social media and the ease with which information can be shared and spread has made it easier for such false claims to gain traction. It underscores the importance of verifying information from reliable sources before accepting it as truth.