The impact of the U.S.' tariff policy has continued to ripple across the globe, triggering widespread panic in financial markets on Monday.

Asian markets plunged within minutes of opening, with Japan's Nikkei 225 index plummeting nearly 9 percent at one point before paring losses to close 7.83 percent lower, its worst single-day drop since August 2023. South Korea's KOSPI slid 5.57 percent, triggering a temporary trading halt, while Hong Kong's stock market cratered, with the benchmark Hang Seng Index down 13.2 percent at the closing bell, its sharpest decline in three decades. The Chinese mainland's Shanghai Composite tumbled 7.34 percent by closing, with over 2,900 A-share stocks hitting China's daily drop limit. The sell-off extended to China's Taiwan, where the benchmark index crashed 9.7 percent, activating circuit breakers.

European markets followed suit, with major indexes extending their losses after the opening bell. As of 2:58 p.m. London time, the pan-European Stoxx 600 had dropped 3.8 percent, with all sectors and major exchanges experiencing substantial declines. Germany's DAX index was down 3.75 percent, rebounding slightly from an earlier plunge of 10 percent, while France's CAC 40 fell by 4 percent. Britain's FTSE 100 dropped 3.61 percent.

Wall Street opened under intense pressure, with the Nasdaq Composite and S&P 500 both plunging over 4 percent in early trading before paring some losses, continuing last week's record rout. This follows Thursday's 4.84 percent crash in the S&P 500 and Friday's 5.97 percent decline, wiping out $5 trillion in stock market value and exceeding a two-day loss of $3.3 trillion in March 2020 when the COVID-19 pandemic ripped across global markets. Tech giants like Nvidia and Tesla remained vulnerable, having already lost more than 15 percent on Thursday and Friday on supply chain concerns. The Dow Jones Industrial Average, which plummeted by more than 9 percent last week, opened 1 percent lower before showing minor rebounds on Monday.

The market carnage stems from U.S. President Donald Trump's April 2 announcement of sweeping "reciprocal tariffs" – a 10 percent baseline levy on all imports with punitive rates up to 49 percent for targeted economies like China and Vietnam. This protectionist move, framed by Trump as "economic medicine," has revived fears of a 1930s-style trade war, with J.P. Morgan warning of a 60 percent global recession probability.

Governments worldwide scrambled to respond. Canada imposed 25 percent retaliatory tariffs on U.S. auto, while the EU said it is preparing countermeasures. Central banks faced mounting pressure to intervene. Protesters across 50 U.S. states and European capitals denounced the tariffs, with crowds chanting, "Hands off our economy!"