Japan’s Nikkei 225 index fell by over 2,900 points on Apr. 7 morning, an 8.8% drop and its third-largest intraday decline on record.

The sharp drop was triggered by escalating US-China trade tensions and fears of a potential 24% tariff on Japanese goods.

The decline mirrors the US market’s losses, where the Dow Jones fell 5.5% on Apr. 4, its third-largest one-day drop in history.

Experts warn the Nikkei may fall below 30,000 if tariff conflicts continue, adding pressure to Japan’s already fragile economy.