Trump’s Radical Tariffs Send U.S. Stock Futures Plummeting
U.S. President Trump announced a series of tariffs on American trade, increasing the likelihood of a full-blown trade war. U.S. stock index futures fell over 3%, and the Nikkei 225 index opened down 4%. Bitcoin plummeted from a high of $88,500 last night to $82,000. Ethereum fell below $1,800 again from $1,957.
Trump’s Radical Tariffs
U.S. President Trump announced that he will impose a tariff of at least 10% on all products imported into the U.S. starting today, as well as additional tariffs on around 60 countries with the most severe trade imbalances. China will face a 34% tariff rate, the European Union will face a 20% tariff, Vietnam will face a 46% tariff, and Taiwan will also have a 34% tariff imposed. Goods from Canada and Mexico that comply with USMCA regulations are exempt from the latest round of tariffs.
Countries that account for the largest share of U.S. exports have been planning retaliatory measures. Insider sources reveal that the European Union is drafting a basket of emergency measures to support the economic sectors that may be hit hardest. Canadian Prime Minister Mark Carney has stated that he is prepared to impose additional retaliatory tariffs.
A full-scale trade war is imminent, with Treasury Secretary Scott Bessent urging U.S. trading partners not to take retaliatory actions. Bessent remarked, “This figure is already at its highest level unless there is retaliation,” and urged all parties to negotiate with the U.S. quickly.
As hopes for a more lenient tariff plan dwindled, U.S. stock index futures plummeted after hours, with S&P 500 futures dropping more than 3.5% and Nasdaq 100 futures contracts falling 4.5%.
Cryptocurrency Market Declines, BTC at 82K
All ten of the largest cryptocurrencies by market capitalization saw declines. Bitcoin dropped directly from last night’s high of $88,500 to $82,000. Ethereum fell below $1,800 again from $1,957.
BNB fell below $600, and Solana experienced a decline of over 7% in 24 hours.
Source: CoinGecko
FDUSD Severely Decoupled? Binance Quickly Clarifies
Last night, Sun Yuchen claimed that First Digital Trust was insolvent, leading FDUSD to decouple significantly to $0.88. Binance quickly responded this morning by presenting its February verification report, confirming that FDUSD can be redeemed at a 1:1 ratio with the U.S. dollar. Regarding the upcoming March verification report, Binance will also conduct an in-depth review of FDUSD’s reserves, expecting the report to be released within the next two weeks.
As of the time of writing, FDUSD’s price has returned to above $0.98.
(Anger Reveals Reason for FDUSD? TUSD’s Nearly $500 Million Reserve Hit a Snag, Cash in Crisis, Sun Yuchen Urgently Steps In, Doubts Arise)
Risk Warning
Cryptocurrency investments carry a high level of risk, and their prices can be extremely volatile. You may lose your entire principal. Please assess risks cautiously.