On March 5, 2025, Asian markets predominantly declined amid worries regarding U.S. President Donald Trump’s erratic trade policies. Investors are particularly anxious that his tariffs may drive the U.S. economy into a recession. The latest development involves a 25% tariff on all U.S. aluminum and steel imports, impacting nations such as Brazil, South Korea, and the European Union.

Trump's inconsistent tariff statements have escalated market volatility, pushing the VIX "fear index" to its highest point since August. While the president minimized concerns about a recession, asserting that the U.S. economy would "boom," analysts pointed out the increasing uncertainty in policies and the adverse effects on consumer and business confidence.

As uncertainty mounts in the U.S., other regions are becoming more appealing to investors in search of stability, with worries escalating about U.S. stock valuations and economic predictions.