Tariffs rock global markets, IMF: World economy at great risk

President Donald Trump's decision to impose trade tariffs on other countries has shaken the global economy.

According to foreign media, the first to feel the turmoil were the Asian markets. Their stocks were collapsing. In Tokyo, the Nikkei 225-share index fell 2.6 percent while the Topix was 3.5 percent lower, writes A2 CNN.

In Japan, chip stocks fell sharply. Advantest and Tokyo Electron fell 7% and 4%, respectively. All but four of the Tokyo Stock Exchange's 33 sector sub-indexes fell, with the banking index the worst performer, down 6.4%.

The Bank of Japan governor said the central bank will closely examine the impact of U.S. tariffs on the country's economy when setting monetary policy. He also warned that higher taxes are likely to weigh on global and domestic economic growth.

Meanwhile, the Shanghai stock exchange remained closed. The main company indexes in Shanghai and Shenzhen also fell.

European stock markets also fell, following in the footsteps of Asia and Wall Street. Fears about the effects of tariffs imposed by Donald Trump have forced these countries to consider the possibility of trade negotiations.

The Moscow Stock Exchange, on the other hand, rose 2.04% in early trading, before settling at +1.76% compared to the day before Trump imposed the tariffs, according to Russian news agency Tass.

Meanwhile, Donald Trump has expressed openness to reducing the announced tariffs. But only if the countries offer something "in kind." Trump said he was happy about the fall in interest rates and believes that economic turmoil will subside. "Tariffs give us great negotiating power," Trump said, adding: "Every country has called us."

For her part, the Head of the International Monetary Fund described the new import tariffs as a “significant risk” to the global economy. They “clearly pose a significant risk to the global outlook” at a time of weak growth, Kristalina Georgieva explained on Thursday. It is important to avoid steps that could cause further damage to the global economy. (A2 Televizion)