Asian Markets Open Lower Across the Board Amid Fears of Trump’s New Tariffs Taking Effect April 2

Asian Markets Open Lower Across the Board Amid Fears of Trump’s New Tariffs Taking Effect April 2

Asian stock markets opened sharply lower on April 1, 2025, led by a steep sell-off in Japanese equities. The Nikkei 225 index fell 3.9%, while the Topix declined 3.7%, as investor concerns mounted ahead of U.S. President Donald Trump’s new tariff policy, scheduled to take effect on April 2.

Other major Asian markets also experienced significant declines:
- South Korea’s Kospi dropped 2.4%
- The Kosdaq fell 2.32%
- Hong Kong’s Hang Seng Index weakened, closing at 23,284, down from its opening level of 23,426.60

U.S. stock futures also came under pressure:
- Dow Jones Futures dropped 258 points (0.6%)
- S&P 500 Futures fell 0.7%
- Nasdaq 100 Futures declined 0.8%

The sell-off follows concerns surrounding President Trump’s upcoming trade measures, which he has referred to as "Liberation Day." A key policy set to take effect is a 25% import tariff on all vehicles not manufactured in the United States. Analysts also anticipate the announcement of retaliatory tariffs in the short term.

Prior to this, U.S. markets had already been under pressure. Last week:
- The S&P 500 declined 1.53%, its fifth drop in the past six weeks
- The Dow Jones Industrial Average lost 0.96%, down three of the last four weeks
- The Nasdaq Composite fell 2.59%
- The Russell 2000 slipped 1.64%

Global investors are closely watching for more clarity on the scope and impact of the new tariffs, particularly how they might disrupt global supply chains and hurt export-driven sectors.