Disappointing earnings from chip darling Nvidia added to the sense of unease on trading floors, with investors questioning their positions after China's DeepSeek upended a blockbuster rally in the US tech sector.
Economists are increasingly concerned for the world outlook owing to Trump's insistence on hammering partners blamed for unfair practices, drug trafficking and immigration issues -- and warning of levies on key sectors including auto, semiconductors and commodities.
That has sent shivers through major exporter countries from the Americas to Europe to East Asia.
After a relatively upbeat month on markets, Trump dealt a fresh blow this week, confirming that 25 percent tariffs on Mexico and Canada would go into effect on March 4.
He had also warned the European Union that it could be hit with 25 percent duties.
China hit back at a warning of further measures against its goods, saying Friday such a move would "seriously impact dialogue" between the two countries on narcotics control and accused Washington of "blackmail".
"Tariffs are back in the crosshairs, and a market that had reduced its sensitivity to recent tariff headlines has had to reconsider that reaction function," said Chris Weston, of Pepperstone Group.
China's leadership is due to meet next week to map out their plans for the economy this year, with Trump high on the agenda, along with how to kickstart consumer activity and support the crucial property sector.
President Xi Jinping said Friday that the economy faced "numerous difficulties" in an article set to be published this week ahead of the meeting.
Asian markets ended a volatile week on a painful note.
Seoul tanked more than three percent and Tokyo lost 2.9 percent, while Shanghai, Manila and Jakarta were at least two percent lower.
Sydney, Mumbai and Bangkok dropped more than one percent, with Singapore also lower.
Among the worst-hit were chip firms, with Samsung and SK hynix well down in Seoul, Advantest tanking almost nine percent in Tokyo, and Tokyo Electron shedding more than four percent. Japanese tech investor SoftBank was also sharply lower.
Among auto firms, Toyota, Nissan and Suzuki all fell deep into the red in Tokyo.
Hong Kong was off more than three percent, with high-flying tech firms also weighed by profit-taking at the end of a blockbuster February that has helped the Hang Seng Index to a three-year high.
London, Paris and Frankfurt all opened in the red.
Market uncertainty also dealt a blow to the crypto sphere, with bitcoin diving below $80,000 for the first time since November. Its low of $78,956 was more than 25 percent off the levels above $109,000 touched last month.
The losses followed a painful day on Wall Street, where the Nasdaq dived more than three percent as US tech firms -- led by the so-called Magnificent 7 -- continue to suffer a pull-back following a long-running rally that was fuelled by investors' voracious appetite for all things linked to AI.
A number of weak economic readings have recently started to stoke concerns that the world's top economy is slowing down, and analysts warn that Trump's plans to slash taxes, regulations and immigration will reignite inflation.
"A macro storm is brewing as a barrage of high-stakes economic data collides with escalating trade tensions, putting markets on edge as February draws to a chaotic close," said Stephen Innes at SPI Asset Management.
"The AI darlings that led Wall Street's charge over the past two years are suddenly looking vulnerable, with macro headwinds shifting sentiment from 'unstoppable' to deeply 'unsettled'," he added.
"Nvidia's post-earnings sell-off was a canary in the coal mine, signalling that even top-tier growth names are struggling to find footing in this environment."
And Saxo markets' Charu Chanana said: "While the Magnificent 7 have dominated US markets, China's tech landscape offers compelling alternatives, particularly as Beijing increases support for the sector.
"With regulatory pressures easing and AI, cloud computing, and semiconductors driving growth, investors are looking at China's version of big tech and beyond."
- Key figures around 0815 GMT -
Tokyo - Nikkei 225: DOWN 2.9 percent at 37,155.50 (close)
Hong Kong - Hang Seng Index: DOWN 3.3 percent at 22,941.32 (close)
Shanghai - Composite: DOWN 1.9 percent at 3,370.52 (close)
London - FTSE 100: DOWN 0.3 percent at 8,728.25
Euro/dollar: DOWN at $1.0390 from $1.0398 on Thursday
Pound/dollar: DOWN at $1.2584 from $1.2600
Dollar/yen: UP at 150.35 from 149.79 yen
Euro/pound: UP at 82.57 pence from 82.52 pence
West Texas Intermediate: DOWN 1.0 percent at $69.64 per barrel
Brent North Sea Crude: DOWN 1.0 percent at $73.32 per barrel
New York - Dow: DOWN 0.5 percent at 43,239.50 (close)
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