The financial landscape took a sharp downturn on Monday, as the repercussions of President Trump’s trade war continued to send shockwaves through global markets. With Japan stocks diving, the U.S. dollar spiraling, and oil prices tumbling, investors are on high alert.

After a brief holiday pause, U.S. stock markets reopened to grim expectations, with S&P 500 futures dropping nearly 1 percent right out of the gate. The Nikkei 225, Japan’s leading stock index, suffered a substantial 1.3 percent decline, reversing the optimism from last week when traders had hoped for a favorable trade agreement with the United States.

Taiwan didn’t fare any better; its benchmark index plummeted by 1.5 percent. Both Japan and Taiwan are heavily reliant on trade with the U.S., making them particularly vulnerable to the ongoing tariff disputes.

Oil prices have also been caught in the crossfire, down about 24 percent since mid-January, with Brent crude sinking to around $67 a barrel. Economists often use oil prices as a barometer for economic health, and the recent declines are raising concerns about the detrimental effects of tariffs on international trade.

The U.S. dollar continued its downturn against the Japanese yen, dipping nearly 1 percent—the lowest level seen since September. It also fell against the euro, marking its lowest point in over three years. Win Thin, a managing director at Brown Brothers Harriman, predicts that this downward trend for the dollar will persist, although he warns that gains in other currencies may not hold due to looming economic slowdowns.

While many markets—including those in Hong Kong, Australia, and much of Europe—remained closed for the Easter holidays, investors everywhere are anxiously monitoring the state of the global economy. Trump has ramped up tariffs on imports, particularly on Chinese goods—which now face tariffs as high as 145 percent. In retaliation, China has imposed high tariffs on U.S. products and imposed restrictions on critical exports such as rare earth minerals, essential for electric vehicles and advanced technologies.

Economists are raising red flags, warning that these developments could lead to higher prices while stifling economic growth.

Despite claims from Trump administration officials that discussions with U.S. trading partners are underway to mitigate the impact of these tariffs, no agreements have surfaced, and it remains uncertain if the U.S. and China are engaged in any constructive dialogues.

This coming week promises critical updates from major corporations about their adaptability amidst these economic shifts. Tesla will unveil its quarterly earnings on Tuesday, followed by Alphabet and Intel on Thursday. Industry insiders will scrutinize their forecasts for clues on how trade policies are shaping their economic outlook.

Adding to the anxiety, the International Monetary Fund (IMF) is set to release new projections for the global economy, anticipated on Tuesday. Early indicators suggest a bleaker outlook for growth and increased inflation than previously forecasted.

Kristalina Georgieva, IMF managing director, has highlighted that extended periods of uncertainty could trigger significant financial market stress.

As the dollar continues to weaken, it hints at a pivotal shift in investor sentiment. While a lower dollar could make U.S. exports more competitive abroad, a dramatic trend away from the dollar as a safe haven could indicate a significant reassessment of American financial stability.