Global financial markets are facing heightened turbulence after U.S. President Donald Trump’s announcement of new trade tariffs sent stock futures tumbling and triggered a major selloff in cryptocurrencies. The move has intensified concerns about prolonged high interest rates and inflationary pressures.
On Sunday night, Dow futures fell 1.2%, while S&P 500 and Nasdaq futures dropped 1.9% and 2.7%, respectively, following Trump’s decision to impose 25% tariffs on Mexican and Canadian goods and 10% levies on Chinese imports, set to take effect Tuesday.
The crypto market saw even steeper declines, with Bitcoin and Ethereum plunging 5% and 10%, respectively, while Dogecoin and XRP lost 19% each. More than $2.1 billion in crypto positions were liquidated within 24 hours, according to CoinGlass data.
The tariff shock comes ahead of a crucial earnings season, with over 120 S&P 500 companies set to report results. Analysts warn that continued trade tensions could weigh heavily on corporate profits and economic growth forecasts for 2025.
In response to U.S. tariffs, Canada imposed retaliatory 25% duties on $155 billion worth of U.S. goods, while Mexico and China have promised countermeasures, including a potential lawsuit at the World Trade Organization.
The U.S. dollar surged in early Asian trading, pushing the Canadian dollar to its weakest level in nine years and dragging the euro to a low not seen since November 2022, according to IMF data.
Despite market jitters, some analysts suggest the reaction may be exaggerated. Trump linked the tariffs to efforts to curb fentanyl trafficking and hinted they could be lifted if trade partners take action.
Credit: Decrypt (Text Excluding Headline)
