# Thai Stock Market Tumbles Following Trump’s Tariff Announcement Amid Global Trade War Fears

- Link: https://www.thailand-business-news.com/markets/192784-thai-stock-market-tumbles-following-trumps-tariff-announcement-amid-global-trade-war-fears
- Published: 2025-02-03T20:43:30+07:00
- Author: Abhishek Prakash

**The Thai stock market fell 3.2%, reacting to U.S. President Trump’s new tariffs
on imports from Canada, Mexico, and China, causing global investor concern over 
a possible trade war.**

> [#SETIndex](https://twitter.com/hashtag/SETIndex?src=hash&ref_src=twsrc%5Etfw)
> closed (3 FEB 2025) 0.77 % lower, down 10.11 points to 1,304.39 >>[https://t.co/zZdR4odqhD](https://t.co/zZdR4odqhD)
> [pic.twitter.com/x413Ry7T1P](https://t.co/x413Ry7T1P)
> — SET Thailand EN (@SET_Thailand_EN) [February 3, 2025](https://twitter.com/SET_Thailand_EN/status/1886376610041074174?ref_src=twsrc%5Etfw)

## Thai Stock Market and Global Impact

On February 3, 2025, the Thai stock market saw a significant drop of 42 points, 
or 3.2%, during the morning session, settling at 1,272.41 points. This decline mirrors
investor concerns following U.S. President Donald Trump’s announcement of tariffs
on imports from Canada, Mexico, and China, raising fears of a potential global trade
war. As of 10:46 BKK time, the market loss reduced to 1.90%, lingering around 1,289
points, marking its lowest level since August 2024, **before closing at 1,304 in
the evening.**

ADVERTISEMENT

Market analysts attributed the initial sharp decline to heightened uncertainty in
global trade dynamics, which could potentially disrupt supply chains and impact 
export-driven economies like Thailand. Sectors most affected included technology,
manufacturing, and agriculture, which are heavily reliant on international trade.
Investors also kept a close eye on the baht, which showed signs of weakening against
the U.S. dollar, further amplifying concerns about capital outflows.

Meanwhile, regional markets in Asia experienced similar jitters, with key indices
in Japan, South Korea, and Hong Kong also posting losses. This synchronized downturn
highlighted the broader apprehension surrounding escalating trade tensions and their
ripple effects on the global economy. Experts suggested that the Thai market may
continue to face volatility in the coming days, depending on how the tariff situation
evolves and whether diplomatic efforts can de-escalate the brewing trade conflict.

Amid the turmoil, some investors shifted their focus to safe-haven assets such as
gold and government bonds, which saw slight upticks in demand. Financial advisors
recommended a cautious approach, urging investors to diversify their portfolios 
and closely monitor developments in both domestic and international markets.

## Regional Market Reactions

The tariff announcement negatively affected other regional markets. Japan’s Nikkei
Index opened down by 639.83 points to 38,932.66, a 1.61% decrease. Hong Kong’s Hang
Seng Index dropped to 20,048.87 points, falling by 176.24 points or 0.87%. Australia’s
S&P/ASX 200 dropped by 1.86%, while South Korea’s KOSPI Index decreased by 2.32%.
The Chinese market remained closed due to the Lunar New Year festival. This tariff
move, effective February 4, has heightened investor apprehensions about global financial
stability.

### Related**Posts**

###  󠀁[Asian stocks retreat as oil rises above $100 and investors reassess global rate risks](https://www.thailand-business-news.com/markets/333019-asian-stocks-retreat-as-oil-rises-above-100-and-investors-reassess-global-rate-risks)󠁿

###  󠀁[Asian markets hold up despite bond rout as US yields enter a structurally higher regime](https://www.thailand-business-news.com/markets/332037-asian-markets-hold-up-despite-bond-rout-as-us-yields-enter-a-structurally-higher-regime)󠁿

###  󠀁[Local Influences and Return Chasing: Entering a New Era in Emerging Equity Markets](https://www.thailand-business-news.com/markets/329573-local-influences-and-return-chasing-entering-a-new-era-in-emerging-equity-markets)󠁿

###  󠀁[Thailand faces a fresh LNG squeeze as Hormuz crisis pushes prices toward US$28/MMBtu](https://www.thailand-business-news.com/markets/commodities/330458-thailand-faces-a-fresh-lng-squeeze-as-hormuz-crisis-pushes-prices-toward-us28-mmbtu)󠁿

The ripple effects of the tariff decision extended beyond Asia, with European markets
also showing early signs of strain. Futures for the Euro Stoxx 50 indicated a potential
drop of 1.2%, while London’s FTSE 100 was projected to open lower by 0.9%. Analysts
attribute the widespread market declines to growing fears of a potential trade war,
which could disrupt global supply chains and dampen economic growth. Meanwhile, 
in the United States, pre-market trading pointed to a shaky start for Wall Street,
with Dow Jones futures down 0.8% and Nasdaq futures sliding 1.1%.

Investors are bracing for further volatility as they await additional details on
the scope and enforcement of the tariffs. Economists warn that prolonged uncertainty
could lead to reduced business confidence and slower investment activity. Central
banks in the region are closely monitoring the situation, with some experts speculating
that monetary policy adjustments may be considered if market instability persists.