After tariffs cause a US collapse, Asian stocks fall.

Rising geopolitical tensions and the possibility of tit-for-tat tariffs escalating the global trade dispute are making investors more cautious.

President Donald Trump's promise to put tariffs on trading partners heightened the prospect of a trade war that would hinder global economic growth, and Asian stocks sank Tuesday, following US shares lower.

Shares in Sydney and Tokyo fell, while futures predicted that Hong Kong's equity indexes would open lower on Tuesday. As the US president signed an order increasing a charge on China to 20% and stated that Mexico and Canada could not negotiate a respite from tariffs slated to take effect Tuesday, the S&P 500 fell nearly 2%. Concerns that the escalating tariff war will hinder global economy caused bonds to rise.