S'pore STI plummets 8.5% on market opening as Trump tariffs take effect

Markets in Asia have been roiled by the global tariffs announced by United States (U.S.) President Donald Trump on Apr. 2, and which took effect on Apr. 6, 2025.

Trillions of dollars have been wiped out from share markets around the world, with Asian and U.S. stocks opening at "sharply lower" prices on Apr. 7, Reuters reported.

The Singapore Exchange (SGX) was also affected by the tariffs.

SGX fell by more than 6 percent at market opening on Apr. 7, CNA reported.

The Straits Times Index (STI), a market capitalisation-weighted index that tracks the performance of the top 30 companies listed on SGX, dropped by 8.5 percent:

Several blue-chip stocks plunged, with DBS dropping 9 percent, while OCBC, UOB, and ST Engineering dropped over 6 percent.

The reason for the plunge? Likely, fears of a global trade war stoked by Trump's tariffs.

Asian markets take a hit

Several Asian markets, besides Singapore, were also affected by the tariffs.

According to CNA, Hong Kong's Hang Seng Index dropped by more than 10 percent.

The Nikkei 225 fell by more than 8 percent, while the Topix dropped by almost 6.5 percent.

South Korea's Kospi dropped almost 5 percent.

In Taiwan, stocks dropped by 9.8 percent.

Trump calls the tariffs "medicine"

Trump imposed a 10 percent baseline tariffs on all of America's trading partners, which came into effect on Apr. 6.

During his announcement of the tariffs at the Rose Garden in the White House on Apr. 2, Trump also said there would be what he called "reciprocal tariffs" imposed on several countries including China, several Southeast Asian counties, and members of the European Union.

Singapore is one of the 11 countries that was hit with a baseline tariff of 10 per cent, instead of the higher "reciprocal" tariffs.

Following the announcement, China hit back with retaliatory tariffs, further stoking fears of a global trade war.

According to the Trump administration, meanwhile, several countries have approached the U.S. for negotiations to lower tariffs imposed on their exports.

Trump has indicated that he is not concerned about the situation in the financial markets:

"I don't want anything to go down. But sometimes you have to take medicine to fix something."

According to Trump's top economic advisors, the tariffs are a means to "reposition" the U.S. in the global trade order.

Top photo from SGX & Fox News/YouTube