Markets React to New U.S. Tariffs and Crypto Surge
The global market kicked off the week with sharp moves as President Trump announced new 30% tariffs on major trade partners, reigniting fears of a trade war. At the same time, Bitcoin soared to record highs above $122,000 as investors anticipate major crypto regulation changes during the highly anticipated “Crypto Week” in Washington.
Keypoints:
- Trump announces 30% tariffs on Mexico and EU, sparking trade war fears.
- U.S. stock futures drop as market reacts to tariff news.
- Bitcoin hits a new high above $122,000 as “Crypto Week” begins.
- China’s trade surplus grows due to rising exports and relaxed U.S. chip rules.
- Oil prices rise slightly as Trump prepares a major statement on Russia.
Trump threatens Mexico, EU with tariffs
President Trump has announced new 30% tariffs on imports from Mexico and the European Union, adding pressure on global trade. This follows similar tariffs on Japan, South Korea, Canada, Brazil, and a 50% tax on copper.
The tariffs will take effect on August 1, giving affected countries under three weeks to negotiate deals. U.S. customs duty collections have already hit a record $113.3 billion in the first nine months of fiscal 2025.
Also covered; Trump escalates trade war with threat of 30% tariffs on EU, Mexico
U.S. Futures Drop on Trade War Concerns
U.S. stock futures fell Monday as investors worried about a possible trade war after Trump’s new tariff announcement. The Dow, Nasdaq, and S&P 500 futures all dropped between 0.5% and 0.6%.
This followed last week’s market dip, where all three major indexes ended their three-week winning streaks. Trade tensions remain the biggest threat to market stability.
Bitcoin Hits New Record as “Crypto Week” Begins
Bitcoin soared past $122,000 as investors look forward to major crypto regulation changes in the U.S. The rise is driven by strong ETF investments and hopes for crypto-friendly laws.
Lawmakers are expected to vote on key bills like the Genius Act and Clarity Act this week. With Trump’s support, these could reshape crypto rules in the U.S. The total crypto market cap has reached $3.78 trillion.
China’s Trade Surplus Rises in June
China's trade surplus in June rose to $114.77 billion, beating expectations. This was due to strong export growth after both China and the U.S. lowered trade tariffs.
Exports grew 5.8% from last year, while imports rose only 1.1%, showing weak domestic demand. Still, the strong export numbers suggest China’s economy is on track to beat its 5% growth goal.
Oil Rises Ahead of Trump’s Russia Statement
Oil prices rose slightly as markets wait for Trump’s upcoming statement on Russia, which could include more sanctions. Brent and WTI crude futures both gained 0.1%.
The U.S. and EU are considering tougher penalties on Russia, including a new price cap on oil exports. Tensions around the war in Ukraine are keeping oil traders on edge.