Asian markets fell sharply Friday as renewed concerns over U.S. tariffs shook investor confidence, with Japan’s Nikkei 225 dropping 5.4 percent and gold hitting another record high.

The selloff followed a brief rally Thursday, when U.S. President Donald Trump announced a 90-day pause on several planned tariffs. Seoul’s Kospi slipped 1.64 percent, while Sydney lost more than two percent.

Oil and the dollar declined on fears of a global economic slowdown. Meanwhile, the yen rose 0.9 percent against the dollar, and gold continued to surge as investors sought safe-haven assets.

While the U.S. paused planned tariffs on the EU and other partners, it raised duties on Chinese imports — now totaling 145 percent — escalating trade tensions. Beijing has responded with retaliatory measures.

"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.