TOKYO — European and Asian benchmarks were mixed on Tuesday, tracking a sell-off on Wall Street spurred by worries over the ripple effects from President Donald Trump’s tariffs.
The futures for the S&P 500 and the Dow Jones Industrial Average were up 0.3%.
Germany’s DAX gained 0.6% to 22,764,82, while the CAC 40 in Paris added 0.7% to 8,102.82. Britain’s FTSE 100 lost less than 0.1% to 8,597.00.
Asian benchmarks skidded as worries grew over how sharply higher tariffs will hurt exporters in the region.
Japan’s benchmark Nikkei 225 sank 0.6% to 36,793.11, its lowest close in six months but up from a more than 2% loss earlier in the day.
China’s Shanghai Composite index picked up 0.4% to 3,379.83 as the country’s annual national congress wrapped up its annual session with some measures to help boost the slowing economy.
In Hong Kong, the Hang Seng was nearly unchanged at 23,782.14.
Australia’s S&P/ASX 200 lost 0.9% to 7,890.10. South Korea’s Kospi declined 1.2% to 2,537.60.
“Heightened anxiety surrounds both existing and incoming U.S. tariffs, along with retaliatory measures from trading partners, and China’s newly effective tariffs will continue to weigh on equities,” said Anderson Alves, a trader at ActivTrades.
Also Tuesday, Japan slightly lowered its October-December economic growth rate to an annual rate of 2.2%, revised from the 2.8% growth given last month, citing lower consumer spending and higher private inventories.
The stock fall in Asia echoed a sell-off Monday on Wall Street, where investors are raising questions on how much painthe economy must endure through tariffs and other policies in order to get what Trump wants.
The S&P 500 dropped 2.7%, closing 9% below its all-time high, which was set just last month. At one point, the S&P 500 was down 3.6% and on track for its worst day since 2022. That’s when the highest inflation in generations was shredding budgets and raising worries about a possible recession that ultimately never came.
The Dow dropped 2.1%, while the Nasdaq composite skidded 4%.
It was the worst day yet in a scary stretch where the S&P 500 has swung more than 1%, up or down, seven times in eight days because of Trump’s on -and- off -again tariffs. The worry is that the whipsaw moves will either hurt the economy directly or create enough uncertainty to drive U.S. companies and consumers into an economy-freezing paralysis.
The economy has already shown some signs of weakening, mostly through surveys showing increased pessimism. And a widely followed collection of real-time indicators compiled by the Federal Reserve Bank of Atlanta suggests the U.S. economy may already be shrinking.
Asked over the weekend whether he was expecting a recession in 2025, Trump told Fox News Channel: “I hate to predict things like that. There is a period of transition because what we’re doing is very big. We’re bringing wealth back to America. That’s a big thing.” He then added, “It takes a little time. It takes a little time.”
Trump says he wants to bring manufacturing jobs back to the United States, among other reasons he’s given for tariffs. His Treasury secretary, Scott Bessent, has also said the economy may go through a “detox” period as it weans off an addiction to spending by the government. The White House is trying to limit federal spending, while also cutting the federal workforce and increasing deportations, which could hinder the job market.
The U.S. job market is still showing stable hiring at the moment, to be sure, and the economy ended last year running at a solid rate. But economists are marking down their forecasts for how the economy will perform this year.
The worries hitting Wall Street have so far been hurting some of its biggest stars the most. Big Tech stocks and companies that rode the artificial-intelligence frenzy in recent years have slumped sharply.
Nvidia fell another 5.1% Monday to bring its loss for the year so far to more than 20%. It’s a steep drop-off from its nearly 820% surge over 2023 and 2024.
Elon Musk’s Tesla fell 15.4% to deepen its loss for 2025 to 45%. After getting an initial post-election bump on hopes that Musk’s close relationship with Trump would help the electric-vehicle company, the stock has slumped on worries that its brand has become intertwined with Musk. Protests against the U.S. government’s efforts to cull its workforce and other moves have targeted Tesla dealerships, for example.
In energy trading, benchmark U.S. crude oil rose 24 cents to $66.27 a barrel. Brent crude, the international standard, rose 32 cents to $69.60 a barrel.
In currency trading, the U.S. dollar rose to 147.29 Japanese yen from 147.14 yen. The euro cost $1.0916, up from $1.0834.
