Asian financial markets took a sharp step back on Thursday following fresh trade threats from former U.S. President Donald Trump, reigniting global concerns over economic stability just days after diplomatic progress with China.

Trump, in a statement that sent tremors through investor circles, announced plans to impose unilateral tariffs on key trading partners within two weeks—a move many fear could reopen trade war wounds and threaten global growth. The announcement comes despite a recent framework agreement between Beijing and Washington, reached in London, aimed at easing bilateral tensions.

The comments have added renewed volatility to already jittery markets. Trump's so-called “Liberation Day” tariff spree on April 2 had already rocked stock and bond markets globally, prompting fears of a potential recession. Though a temporary pause in those tariffs had fueled a brief relief rally, the former president’s remarks on Wednesday unsettled investors once again.

“We’re going to be sending letters out in about a week and a half, two weeks, to countries, telling them what the deal is,” Trump said to reporters. “You can take it or leave it.”

Analysts say the ambiguity of such statements continues to create a cloud of uncertainty over global trade relations. “Markets were hoping for clarity, but what we’ve seen is more confusion,” said Nick Twidale of AT Global Markets in Australia.

Asian indices reflected the unease, with Tokyo’s Nikkei 225 and Hong Kong’s Hang Seng Index both down by 0.7%, while Shanghai’s Composite fell 0.1%. Jakarta, Wellington, and Taipei also ended in the red, while Sydney, Singapore, and Seoul managed modest gains.

Wall Street’s performance the day before also contributed to the dip in sentiment. U.S. stocks closed flat, with trade-related anxiety overshadowing softer-than-expected inflation data, which otherwise would have bolstered hopes of an interest rate cut from the Federal Reserve.

Geopolitical tensions in the Middle East added another layer of caution. Trump revealed that U.S. personnel are being relocated from the region amid faltering nuclear negotiations with Iran, describing the area as potentially “dangerous.” The former president, taking a firm stance, said: “They can’t have a nuclear weapon. Very simple. We’re not going to allow that.”

The warning came as Tehran signaled its readiness to retaliate against U.S. military bases in the event of conflict escalation, raising fears of a broader regional confrontation.

Crude oil prices retreated slightly but remained elevated after a significant midweek rally triggered by those geopolitical concerns. Brent crude was down 0.5% at $69.44 per barrel, while West Texas Intermediate slipped to $67.83.

Currency markets saw the dollar lose ground against the yen, while the euro and pound both edged up. Analysts remain watchful for further developments as traders seek direction in an increasingly unpredictable policy environment.