The Asian market plunged in the wake of the reciprocal tariffs announcement made by Donald Trump in the White House’s Rose Garden on Wednesday. The US President stepped out yesterday evening to mark what he called one of the most important days in the history of America, the so-called Liberation Day. Pledging to free the States from the economic shackles, he unveiled tariffs ranging from 10% to 50%.

This declaration of trade war appeared to have a negative effect on the Asian markets, which opened lower. Japan’s benchmark stock index, the Nikkei 225, was down by 4% in early trading. South Korea’s Kospi index slumped 1.9% soon after opening, while in Australia, the S&P/ASX 200 fell 1.8%. Australia’s ASX 200 opened around 2% lower. Mr Trump presented the global levies, which he calls “reciprocal tariffs”, claiming the US would do to its trading partners what they had been doing to it for decades.

“Taxpayers have been ripped off for more than 50 years,” he said.

“But it is not going to happen anymore.”

Mr Trump promised that “jobs and factories will come roaring back into our country”, and framed the issue as not just an economic one, but a question of national security that threatens “our very way of life”, Associated Press reported.

South Korea’s acting president Han Duck-soo has reportedly told officials to work with business groups to analyse the potential impact of the new 25% tariff to “minimise damage”, according to the country’s trade ministry said.

China’s commerce ministry said Beijing would “resolutely take countermeasures to safeguard its own rights and interests”, without outlining an exact measures.

The country has reacted to earlier rounds of higher tariffs by imposing higher duties on US exports of farm products, while limiting exports of strategically important minerals used for high-tech industries like the manufacture of electric vehicles.

The ministry said: “China urges the United States to immediately cancel its unilateral tariff measures and properly resolve differences with its trading partners through equal dialogue.”