Global stock markets plunge as Trump sticks to tariff strategy

International financial markets have seen significant losses, with stock indices in the Asia-Pacific region facing dramatic declines overnight. 

Despite the turbulent market conditions, US President Donald Trump remains steadfast in his stance, insisting that tariffs will not be lifted unless foreign governments pay "a lot of money," Caliber.Az reports per foreign media.

In a series of losses, Japan's Nikkei 225 stock index plunged nearly 8%, while Singapore’s benchmark index dropped by 6.8%. Australia's S&P/ASX 200 fell more than 6%, and South Korea's Kospi lost 4.4%.

However, Trump, speaking aboard Air Force One, reaffirmed his commitment to maintaining tariffs, stating, “I don’t want anything to go down, but sometimes you have to take medicine to fix something.”

He added that he had spoken to leaders from Europe and Asia over the weekend, all hoping to convince him to reconsider the planned "reciprocal" tariffs, which are set to come into effect on Wednesday. “I spoke to a lot of leaders, European, Asian, from all over the world,” he said. “They’re dying to make a deal. And I said, we’re not going to have deficits with your country.”

Trump also stressed his belief in the importance of balancing trade, saying, “We’re not going to do that because to me, a deficit is a loss. We’re going to have surpluses or, at worst, going to be breaking even.”

While spending the weekend playing golf in Florida, Trump posted on his Truth Social platform, reaffirming his stance on the trade dispute. "WE WILL WIN. HANG TOUGH, it won’t be easy," he wrote.

Trump further reiterated his position on tariffs, claiming that they are already bringing significant financial benefits to the United States. “We have massive Financial Deficits with China, the European Union, and many others. The only way this problem can be cured is with TARIFFS, which are now bringing Tens of Billions of Dollars into the U.S.A. They are already in effect, and a beautiful thing to behold."

In his message, Trump continued, “The Surplus with these Countries has grown during the ‘Presidency’ of Sleepy Joe Biden. We are going to reverse it, and reverse it QUICKLY. Some day people will realize that Tariffs, for the United States of America, are a very beautiful thing!”

Donald Trump's new tariffs, ranging from 10% to 49%, on electrical components, battery storage, and other equipment from China, Southeast Asia, and Europe are threatening the renewable energy industry in the US. The tariffs are expected to drive up energy prices, disrupt supply chains, and undermine the US’s push to lead in artificial intelligence and clean technology.

Sandhya Ganapathy, CEO of EDP Renewables North America, expressed concern, saying the tariffs create business disruption and could derail efforts to make the US the centre of data centres and AI technology. The tariffs are especially challenging for the renewable sector, which is already dependent on overseas imports and facing reduced government support under Trump’s policies, such as his vow to dismantle the Inflation Reduction Act (IRA).

Analysts warn that the battery storage sector is particularly vulnerable, as 90% of lithium-ion energy storage cells in the US come from China. These tariffs could increase costs substantially, with duties on Chinese battery cells rising to 82.4% by 2026.

The US solar and wind industries, reliant on imports of components such as panels, blades, and electric systems, are also facing higher costs. Marius Mordal Bakke from Rystad Energy noted that the shift towards more domestic manufacturing will still be met with higher costs for developers.

Overall, the tariffs are expected to increase energy prices for consumers and complicate the growth of green energy in the US.

By Aghakazim Guliyev