In global markets, the tariff earthquake continues. US President Trump did not retract from tariffs, likening the market downturn to taking medicine. Selling intensified on Asian stock markets, with trading halted in Japan. Expectations for a swift interest rate cut from the Fed increased.

As US officials signaled they would not back down on tariffs disrupting the markets, sharp declines are being witnessed in stock prices. US President Donald Trump announced that investors would have to accept the impacts of taxes and that no agreement would be reached with China until the US’s trade deficit issue is resolved. China stated that the effect of retaliating against the US’s increased tariffs is clearly visible in the markets. Meanwhile, trade ministers of the European Union will meet in Luxembourg today to discuss how to react to Trump’s tariff package.

Trump made a comparison to medicine regarding the market downturn, saying, “I don’t want anything to go wrong, but sometimes you need to take medicine to fix something.” Meanwhile, reactions from the American business community to Trump have increased. Billionaire investor Bill Ackman argued that Trump’s tariff strategy was leading the country into an economic nuclear winter, noting that voters did not sign up for such a scenario.

Futures in US and European stock markets experienced losses exceeding 3%. Japan’s Nikkei index fell by 7.29%, reaching its lowest level since 2023. South Korea’s KOSPI index declined by 5.24%. The MSCI index monitoring Asia-Pacific markets, outside of Japan, fell by 7.68%, marking the sharpest drop in 16 years. As markets await whether China will announce new support measures in response to US tariffs, the CSI 300 index tracking leading stocks fell by 6.31%. Losses on the Australian stock exchange reached 10%.

Investors priced in an increased recession risk due to tariffs, predicting that the US Federal Reserve would lower interest rates starting from May. According to futures, five interest rate cuts of 25 basis points each are priced in the US this year, causing yields on Treasury bonds to fall and the dollar to weaken. Following investors turning towards assets considered safe havens, the yield on US Treasury bonds fell by 8 basis points to 3.916%.