London's FTSE 100 index dipped by 0.7% at the start of trading on Monday, while the FTSE 250 experienced a steeper decline of 1.28%.
This downward trend followed a sharp drop in Asian markets overnight, as investor confidence took a hit ahead of the next round of Trump tariffs, as reported by .
In Japan, the Nikkei 225 plummeted by 4.1% to 35,615.15, while Hong Kong's Hang Seng fell by 1% to 23,200.65. South Korea's Kospi also took a hit, sinking by 2.6% to 2,492.49.
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The Australian ASX 200 wasn't immune to the downturn, declining by 1.6% to 7,856.80. Meanwhile, Thailand's SET index dropped by 0.9% following a powerful earthquake in Myanmar.
As investors sought safer bets, gold prices surged past $3,100 to a new record high. According to Susannah Streeter, head of money and markets at Hargreaves Lansdown, "The last day of March is spring-loaded with uncertainty on financial markets."
She attributed the market unease to concerns over the impact of Trump's tariffs, which have been amplified and are causing sharp market movements.
Streeter warned that London-listed stocks would not be immune to the tariff fallout, with the FTSE 100 set for a challenging start to the week as investors brace for the potential effects of widespread tariffs.
The "stampede into safe havens" like gold, Streeter said, was a result of investors seeking ways to "shelter their money, amid a high stakes trade game."
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Ahead of Trump's so-called 'Liberation Day' on 2 April, the markets are experiencing a fresh round of turbulence. Starting Wednesday, new 25 per cent tariffs on all automotive imports into the US will take effect.
Shares in leading Japanese car manufacturers Toyota, Honda and Nissan all fell following Trump's announcement of the levies last week. The latest trade taxes imposed by Trump have ignited fears of stagflation, with the US economy preparing for stagnant growth coupled with increased inflation.
In an interview with NBC News on Sunday, the US president stated he "couldn't care less" if his tariffs cause car prices to rise. He added: "People are going to start buying American-made cars," Analysts are warning that the risk of a US recession has significantly increased due to the ongoing trade war.
Goldman Sachs has forecasted that aggressive tariffs will essentially halt US economic growth, with inflation expected to reach 3.5 per cent – considerably above the Federal Reserve's 2 per cent target. The investment bank is predicting a 35 per cent chance of inflation within the next year.
Meanwhile, data from last week revealed that even before the tariffs, the 海角视频 automotive industry was already struggling, with production of cars and commercial vehicles witnessing an 11.6 per cent decline.