Asian markets experienced a severe downturn following US President Donald Trump’s sweeping tariff hike, triggering fears of a global recession.

Axar.az, citing BBC, reports that stock indexes from Shanghai to Sydney fell sharply, with Hong Kong and Taiwan plunging nearly 10%.

The region, heavily reliant on exports to the US, is feeling the brunt of the tariff impact, particularly nations like Vietnam and Bangladesh, which now face tariffs of 46% and 37% respectively.

The turmoil has sparked fears of inflation and a US recession, with major financial institutions like Goldman Sachs and JPMorgan raising the likelihood of economic contraction. Global markets, including in the US and Europe, are also experiencing sharp declines.