In early trade the Nikkei 225 was off 5.4%, having soared 9.1% yesterday after US President Donald Trump paused many tariffs for 90 days.

Other markets also handed back many of their gains of the previous day, with the Kospi in Seoul off 1.64% and Sydney down more than 2%.

Oil and the dollar also slid on fears of a global slowdown in economic activity, while gold hit a new record.

Fellow safe-haven asset the yen also gained 0.9% against the dollar today.

Trump maintained a 10% blanket tariff on most countries.

But he paused plans for tariffs of 20% on the European Union and even higher levies on multiple other trade partners including 24% on Japan.

However, the levies on China, which has retaliated with tariffs on US goods, were not only maintained but hiked further.

The White House yesterday clarified that levies on Chinese imports are now at a staggering total of 145%.

“The sugar high from Trump’s tariff pause is fading fast, and Asia’s about to feel the comedown,” said Stephen Innes at SPI Asset Management.