Trump's surprise announcement of a 24% tariff on Japan sent markets into freefall. The Nikkei plummeted over 1,500 points in early trading, continuing the previous days' downward trend. By afternoon, the impact spread globally with the Dow dropping over 1,500 points.

Japan's government promised a "bold and speedy" response, though the Economic Minister later admitted retaliatory tariffs would be "difficult." Party leaders from across the political spectrum scheduled emergency meetings as markets digested that Trump's formula likely calculated tariffs by dividing trade deficits by import volumes.

Financial analysts warned market adjustments would continue with the yen strengthening to 145 against the dollar, a six-month high. The market chaos overshadowed domestic news about 26 middle school students being investigated for cannabis-related offenses, a record high indicating a growing youth drug problem.