Investors have been rushing to position themselves for the US president's "Liberation Day" on Wednesday, when he warned he will impose levies on "all countries" for what he has said is years of them ripping off Americans.
Trump said Monday he would be "very kind" when he unveils the tariffs but with little detail on who will be hit with what, trading floors are awash with uncertainty, hammering equities across the board and stoking recession fears.
Trump's threat last week to impose 25 percent tariffs on car and parts imports added to the dour mood, and some warn the volatility will likely continue as governments react to the measures by either appeasing the Republican or retaliating in kind.
On Tuesday, Vietnam said it would slash duties on a range of goods including cars, liquefied gas and some agricultural products, while the European Union and Taiwan indicated they had plans to deal with the announcement.
"Some on Wall Street are already talking about how 'April 2' may very well be lighter-than-feared, producing a snap-back rally in risk assets," said Jose Torres, a senior economist at Interactive Brokers.
"But others worry that this economy can't handle a stress test of this magnitude and point to households increasingly unable to sustain expenditure patterns in light of mounting headwinds."
After a run of big losses across markets, equities staged a mild recovery Tuesday.
Tokyo, which has borne the brunt of the pain owing to hefty selling of car giants including Toyota and Honda, edged up along with Hong Kong, Shanghai, Sydney, Seoul, Taipei, Bangkok, Singapore and Wellington. Mumbai dipped.
London, Paris and Frankfurt rose in the morning.
But the rebound was as fragile as that seen in New York, where the S&P 500 rose on Monday but closed its worst quarter since 2022.
With uncertainty reigning, gold -- a go-to safe haven in times of turmoil -- chalked up another record, hitting $3,149.00.
That came after Wall Street's so-called VIX "fear index" rose for a fourth successive day.
"We continue to think that markets including Asia forex are underpricing the magnitude of these tariffs, and our North Star is for Trump to be more aggressive than many think possible in a significant structural change to the post-World War II global order, beyond the day-to-day policy whiplash and uncertainty," said Michael Wan at MUFG.
- Key figures around 0810 GMT -
Tokyo - Nikkei 225: FLAT at 35,624.48 (close)
Hong Kong - Hang Seng Index: UP 0.4 percent at 23,206.84 (close)
Shanghai - Composite: UP 0.4 percent at 3,348.44 (close)
London - FTSE 100: UP 0.7 percent at 8,639.85
Euro/dollar: DOWN at $1.0803 from $1.0817 on Monday
Pound/dollar: DOWN at $1.2908 from $1.2916
Dollar/yen: DOWN at 149.60 yen from 149.94 yen
Euro/pound: DOWN at 83.67 pence from 83.69 pence
West Texas Intermediate: DOWN 0.1 percent at $71.38 per barrel
Brent North Sea Crude: DOWN 0.1 percent at $74.68 per barrel
New York - Dow: UP 1.0 percent at 42,001.76 (close)
dan/mtp
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