JAKARTA – United States President Donald Trump has once again shaken global markets by stating that the world must "take medicine" in the form of high tariffs to address the US trade imbalance.

This statement was made by Trump aboard the presidential aircraft, Air Force One, in response to the global stock market plunge caused by the latest tariff policies imposed on dozens of countries.

Trump emphasized that foreign governments must pay "a lot of money" if they want the tariffs to be lifted. The tariffs, he added, are not merely a punishment but a form of "treatment" to fix an imbalanced trade system.

"I don’t want anything to go down, but sometimes you have to take medicine to fix something," Trump told reporters.

As a result, Asian stock markets plummeted during early Monday trading. Japan's Nikkei 225 index dropped nearly 9%, Hong Kong's Hang Seng fell 8%, and Taiwan's stock exchange declined almost 10%, triggering temporary trading halts (circuit breakers). Tech giants like Alibaba and Tencent were also hit hard.

Meanwhile, South Korea's stock exchange was forced to halt trading for 5 minutes due to sharp declines. In Australia, market losses exceeded US$160 billion in a single morning.

This crisis has sparked fears of a global recession triggered by a large-scale trade war. Japanese Prime Minister Shigeru Ishiba asserted that his government would continue to push for tariff relief while preparing financial aid for local companies. In Taiwan, President Lai Ching-te even offered tariff elimination as a basis for negotiations with the US.

The impact was not limited to Asia; European countries were also affected. UK Prime Minister Keir Starmer promised to support the automotive and life sciences industries that were impacted. Italian Prime Minister Giorgia Meloni stated she would protect local businesses from the effects of the new tariffs, particularly the wine industry. Meanwhile, India and Israel opted for diplomatic channels, hoping to secure tariff exemptions from Trump.

The economic impact is becoming increasingly evident. According to JPMorgan, as quoted by IDNFinancials.com on Sunday (April 6), the US GDP is projected to decline by 0.3% this year, with unemployment rising to 5.3%. Additionally, nearly US$10 trillion in US stock market value has been wiped out since mid-February, delivering a heavy blow to the pension funds of millions of Americans.

Although Trump’s economic advisers claimed there is no reason to worry about a recession, market analysts warned that if there is no rollback of these tariff policies, markets could face a massive liquidity crisis that would affect all asset classes globally. (EF/LM)