Japanese stocks dropped on April 7 due to the impact of US President Donald Trump's tariffs announcement.

The Nikkei Stock Average temporarily plunged more than 2,900 points in the morning at the Tokyo Stock Exchange, the third largest fall on record during trading hours.

The key index declined below 31,000 to the lowest intraday level in about a year and a half, going below the low marked in August 2024 when it also fell sharply.

Trump's announcement of reciprocal tariffs has led to the Dow Jones Industrial Average dropping over 2,200 points on April 4. 

The stock market in Tokyo started the new week following in the footsteps of Wall Street.

Workers at a securities firm in Tokyo were busy handling phone inquiries from investors.

Some individual investors said they are worried as they did not think Tokyo stocks will fall this much.

A market analyst predicted that the market would remain unstable until some countries conclude negotiations with the United States on reducing the tariffs.