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International stock markets have dropped dramatically overnight amid the fear of a global trade war to the livestock of Donald Trump, which he called ‘medicine’.
Japan’s Nikkei 225 stock index dived almost 8%, Australia’s S&P/ASX 200 dropped more than 6%, and the Kospi of South Korea lost 4.4%.
Meanwhile, the US stock market futures indicated further weaknesses, with the future for the S&P 500 that lost 4.2%and the Dow Jones industrial average fell 3.5%, while the future for the Nasdaq lost 5.3%.
Mr Trump warned that foreign governments have to pay ‘a lot of money’ to uplift his rates, which he described as ‘medicine’.
“I don’t want anything to go off. But sometimes you have to take medicine to fix something, ‘he said at Air Force One.
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The US president said he spoke to leaders from Europe and Asia over the weekend who hoped to convince him to lower the tariffs, which will come into effect this week.
“I talked to many leaders, European, Asian, from all over the world,” Trump said. “They are making a deal. And I said, we’re not going to have shortages with your country. We’re not going to do that because for me a deficit is a loss. We will have surpluses or even break in the worst case. ‘
Mr. Trump, who played most of the weekend in Florida golf, posted on his truth social platform: “We’ll win. Hanging tough, it won’t be easy.”
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Trump’s rates: What you need to know
On Saturday, US Customs Agents began the one -sided 10% tariffs of Mr. To collect Trump on all imports from many countries.
Higher “reciprocal” rates of between 11% and 50% on individual countries will come into effect on Wednesday.
Mr. Trump’s tariff announcements have kicked economies around the world, which retaliates from charges from China and
aroused the fear of a global trade war and recession.
Investors and political leaders have struggled to determine if the rates are here to stay, or form part of a permanent new regime or a negotiating tactic to win concessions from other countries.
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Is it time to change tactics with Trump?
This comes after Sir Keir Starmer promised “daring changes” While announcing that it will relax rules around electric vehicles after the car manufacturers through the rates of Mr. Trump was hit.
The prime minister said that “global trade is transformed” after the US president‘s 25% levy on imported cars, and 10% tariff on other products, entered into effect.
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‘Nothing off the table’ over rates
Meanwhile, KPMG has warned that US tariffs on British exports could see that GDP growth was dropping to 0.8% in 2025 and 2026.
The accounting firm said that higher rates on specific categories, such as cars, aluminum and steel, the release of pharmaceutical exports will become more than counteracted, leaving the effective rates on the UK export at about 12%.
KPMG UK chief economist Yael Selfin said: “Given the economic impact that rates would cause, there is a strong incentive to seek a negotiated settlement that reduces the need for rates. The UK car manufacturing sector is particularly exposed given the complex supply chains of some producers.”
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