Stocks plunge as US imposes massive tariffs

Washington [US], April 1: World stocks opened the week on a gloomy note after US President Donald Trump announced reciprocal tariffs would be applied without excluding any country.
Yesterday (March 31, Vietnam time), US President Donald Trump announced that he would impose reciprocal tariffs on all countries, not just the group of countries with the largest trade imbalance with the US as previously thought.
America's "Demand for Justice" Day
Speaking to reporters on the plane on March 30, the White House owner said that on April 2, he will announce reciprocal tariffs to adjust the long-standing imbalance in trade activities between the US and the rest of the world. When asked which countries will be subject to reciprocal tariffs, President Trump confirmed that the new US move will be applied regardless of trading partners. "We are talking about all countries, not a specific group of countries," Mr. Trump said.
Previously, the latest round of tariffs by the Washington administration was expected to target 15% of partners that maintain a persistent trade imbalance with the US, which US Treasury Secretary Scott Bessent called the "Group of 15". However, Mr. Trump's confirmation has dashed any hope that the US would reduce the level of tariffs, or that the new measures would only target a specific group of countries.
In addition, tariffs on imported cars and light trucks will also take effect from April 3. Speaking on Fox News on March 30, Mr. Peter Navarro, President Trump's trade advisor, estimated that the US will collect about $100 billion/year from car tariffs and $600 billion/year from other taxes.
World stocks shake
Following the news from the US, trading markets in Asia-Pacific witnessed a sharp decline in stock prices. According to CNBC, Japan's Nikkei 225 index fell 4.05% to 35,617.56 points when the exchange closed, losing nearly 12% of its value compared to its level in December 2024.
In South Korea, the Kospi index fell 3% to close at 2,481.12 points, while the Kosdaq index fell 3.01% to 672.85 points. The developments forced market regulators in South Korea to allow short selling again after a prolonged ban.
Other Asian markets were also affected, with Australia's S&P/ASX 200 down 1.74%. Mainland China's CSI 300 lost 0.71%, and Hong Kong's Hang Seng fell 1.2% in late trading. Taiwan's Taiex index fell a whopping 4.2%.
European stocks also followed the general trend after President Trump said he would impose reciprocal tariffs, raising concerns that the trade war would flare up and lead to a broad economic recession. The pan-European STOXX 600 index fell 1.2%, while Germany's DAX and France's CAC 40 fell 1.1% and 1.3%, respectively.
The prospect of a flood of tariffs has prompted Goldman Sachs to lower its GDP forecasts for the United States and the euro zone, and add interest rate cuts for both regions, Reuters reported, citing announcements from the US Federal Reserve and the European Central Bank (ECB). Gold prices also rose to a record high yesterday, trading at $3,127.92 an ounce.
Source: Thanh Nien Newspaper