BLACK MONDAY

Trillions vanish as global economy teeters on a precipice after China slaps 34% levy on all US goods

- Issac John

In a whirlwind of financial devastation dubbed "Black Monday", global markets spiralled into chaos as China's retaliatory tariffs against the US fanned fears of a full-blown trade war and a looming recession.

Triggered by President Donald Trump's aggressive tariff salvo last week - touted as a cure for decades of trade imbalances - the escalation has obliterated trillions in market value, battered commodities, and driven investors into a frenzied dash for safety. From Hong Kong's gut-wrenching 13.2 per cent plunge to Frankfurt's 4.1 per cent collapse, no corner of the globe was spared.

The fuse was lit late on Friday when Beijing, after Asian markets shuttered, announced a hefty 34 per cent levy on all US goods starting April 10, paired with export controls on rare earth elements crucial for tech and medical industries.

This bold counterpunch to Trump's tariffs unleashed a torrent of selling as markets reopened. Hong Kong's Hang Seng Index cratered 13.2 per cent - its darkest day since the 1997 Asian financial crisis while Tokyo's Nikkei 225 shed 7.8 per cent. Shanghai's Composite tumbled 7.3 per cent, prompting state-backed Central Huijin Investment to step in as a lifeline.