Asian share markets have experienced notable declines following a pronounced selloff in the United States, instigated by President Donald Trump’s veiled acknowledgment that forthcoming tariffs may precipitate a recession in the world’s foremost economy. In New York, technology equities faced severe turbulence, with the Nasdaq enduring its most significant downturn since 2022. This market upheaval ensued after Trump characterized the U.S. economy as being in a “period of transition” when queried about burgeoning recession concerns.

While the president has refrained from elaborating directly on economic matters subsequent to his alarming remarks, high-ranking officials and advisers have endeavored to assuage investor anxieties. In early trading on Tuesday, Japan’s Nikkei 225 plummeted by 2.5%, the South Korean Kospi fell 2.3%, and Australia’s S&P/ASX 200 declined by 1.8%.

On Monday, the S&P 500, a benchmark for major American corporations, concluded trading down 2.7%, while the Dow Jones Industrial Average receded by 2%, and the Nasdaq plummeted by 4%. Notably, Tesla shares experienced a staggering decline of approximately 15.4%, while Nvidia, a leading AI chip manufacturer, saw its stock diminish by over 5%.

In a recent interview with Fox News, recorded earlier in the week, Trump appeared to validate concerns regarding economic stability, although his administration has asserted that industry leaders have responded positively to his agenda, committing trillions in investments. Nevertheless, apprehensions among economists persist, particularly regarding the potential for slowed growth and rising prices driven by an environment of increased tariffs, which could ultimately curtail economic expansion.