Japan’s Nikkei Plunges Over 7% as Tariff Fallout Roils Global Markets
- Nikkei 225 drops more than 7%, Topix nearly 8%, amid US tariff escalation
- Japan faces 24% US tariff starting Wednesday, sparking economic concerns
- PM Ishiba plans wide-ranging trade deal proposal, including LNG, autos, and security
- Global markets sink as US stock futures and oil prices signal continued selloff
April 8, 2025 – Japan’s benchmark Nikkei 225 index fell sharply by over 7% in early Monday trade, joining a wave of losses across Asia as financial markets reeled from US President Donald Trump’s aggressive tariff policies. The broader Topix index also fell nearly 8%, while South Korea’s Kospi dropped close to 5%, and Australia’s ASX slid around 6%.
The rout comes as US futures plunged on Sunday, suggesting Wall Street is poised for further losses after already experiencing its worst week since 2020. The tariff escalation, which includes a 24% US import duty on Japanese goods set to take effect Wednesday, has rattled investor confidence across the Asia-Pacific region.
While Tokyo has not yet announced direct retaliation, policymakers have indicated that “no options are off the table.” However, clarity on Japan’s response remains limited. Prime Minister Shigeru Ishiba said his government is preparing a comprehensive proposal for trade talks with the US, aimed at mitigating the impact of the tariffs.
“When we negotiate with the U.S. we want to present a package,” Ishiba said over the weekend. “That will take some time, but we will make it a success.” The package may cover liquefied natural gas exports, the automotive sector, agriculture, and even national security cooperation, according to Japanese media reports.
Ishiba also confirmed that he is seeking a call with President Trump this week to initiate discussions.
Meanwhile, Trump defended his economic strategy, denying accusations of deliberately triggering a market collapse. Speaking to reporters aboard Air Force One, Trump stated, “Sometimes you have to take medicine to fix something,” in reference to the steep losses across US and global equities.
The president reiterated his stance that no deals will be made until America’s trade deficits are addressed, and claimed leaders from Europe and Asia are “dying to make a deal.” His sweeping 10% blanket tariffs on nearly all US trading partners came into effect over the weekend, with additional targeted tariffs set for Wednesday.
Market volatility is likely to persist this week as geopolitical tensions mount and investors await responses from major economies, particularly China, Japan, and the European Union.
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