Asian stock markets slumped on Feb. 3 and U.S. equity futures pointed sharply lower after U.S. President Donald Trump's tariffs on Canada, Mexico and China triggered fears of a broad trade war and hit to global growth.

Oil prices rose, with WTI up 2.4% at $74.27 a barrel and Brent crude futures adding 1% to $76.40 a barrel.

The U.S. dollar shot to a record high against the Chinese yuan in offshore trading, and jumped to the highest since 2003 against Canada's currency and the strongest since 2022 versus Mexico's peso.

Japan's Nikkei share average tumbled as much as 2.3% in the first minutes of trading, and Australia's benchmark–which often functions as a proxy for Chinese markets—also slumped more than 2%.

Hong Kong stocks open later in the day, while mainland markets remain shut until Feb. 5 for Lunar New Year holidays.

Trump slapped Canada and Mexico with duties of 25% and China with a 10% levy at the weekend, as he had threatened last month, calling the measures necessary to combat illegal immigration and the drug trade.

Canada and Mexico immediately vowed retaliatory measures, and China said it would challenge Trump's levies at the World Trade Organization.

The tariffs, outlined in three executive orders, are due to take effect 12:01 a.m. EST on Feb. 4.

Trump's move was the first strike in what could usher in a destructive global trade war and drive a surge in U.S. inflation that would "come even faster and be larger than we initially expected," said Paul Ashworth of Capital Economics.

A model gauging the economic impact of Trump's tariff plan from EY chief economist Greg Daco suggests it would reduce U.S. growth by 1.5 percentage points this year, throw Canada and Mexico into recession and usher in "stagflation" at home.

Barclays strategists previously estimated that the tariffs could create a 2.8% drag on S&P 500 company earnings, including the projected fallout from retaliatory measures from the targeted countries.

S&P 500 futures slid 1.7%, after a 0.5% retreat for the cash index on Jan. 31, when the White House reiterated Trump's plan to announce tariffs on Feb. 1. NASDAQ futures slumped 2.5%, following Jan. 31’s 0.3% loss for the cash index.

The U.S. dollar advanced 0.7% to 7.2552 yuan in the offshore market early in Asia's morning, having earlier pushed to the record high of 7.3765 yuan. There will be no official onshore trading due to holidays.

The U.S. currency climbed 2.3% to 21.15 Mexican pesos, crossing the 21-peso line for the first time since July 2022, and rose 1.4% to CA$1.4755, a level not seen since 2003.

The euro plunged as much as 2.3% to $1.0125—the lowest level since November 2022 with Europe also potentially in Trump's tariff crosshairs.

Japan's yen was more resilient, losing 0.2% to 155.53 per dollar.

Cryptocurrency bitcoin tumbled as much as 5.8% to a three-week low of $96,191.39.

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