Trump’s Tariff Threats Send Stocks Tumbling as Bitcoin Struggles

Wall Street and crypto markets took a major hit this week as Donald Trump’s latest tariff threats triggered uncertainty among traders. Stocks plunged on Friday, capping off a week filled with economic volatility, inflation concerns, and disappointing earnings from Nvidia, Meta, and Microsoft.

Stocks Slide Across the Board

The Dow Jones Industrial Average dropped 444.23 points, closing at 44,303.40, while the S&P 500 fell 0.95% to 6,025.99. The Nasdaq suffered the biggest hit, sinking 1.36% to 19,523.40. Every major index ended the week in the red, reflecting investor fears over economic instability.

Tariffs Spark Market Sell-Off

The market turmoil began last weekend when Trump announced a new wave of tariffs, including 25% duties on Canada and Mexico and 10% on China. Following discussions with Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum, Trump delayed the North American tariffs, but China wasn’t spared. The 10% tariff on Chinese imports took effect Tuesday, triggering a market sell-off that only worsened as the week progressed.

On Friday, Trump added fuel to the fire, saying, “I’ll be announcing that next week—reciprocal trade—so that we’re treated evenly with other countries.” Traders, already on edge, saw this as a sign of more economic uncertainty ahead.

Bitcoin Struggles to Hold $100K

As expected, Bitcoin hasn’t fared much better. While gold prices surged 9% this year, Bitcoin has only managed a 2.65% gain, disappointing investors who once hoped Trump’s return to office would be a major catalyst for the crypto market.

Since Trump’s inauguration, Bitcoin has struggled to stay above $100,000, with geopolitical tensions and market instability spooking investors. Despite being marketed as a store of value, Bitcoin continues to behave more like a volatile tech stock than digital gold.

Gold Hits Record High

Meanwhile, gold hit a record high of $2,882 an ounce on Friday following Trump’s controversial remarks about the US possibly taking over Gaza. While the White House scrambled to downplay the statement, the uncertainty pushed more investors into safe-haven assets like gold.

With ongoing US-China trade tensions, Citi analysts predict gold could reach $3,000 in the coming months. Meanwhile, the strong US dollar is making things even tougher for Bitcoin, as traditional investors continue to favor stable assets over riskier alternatives.

For now, markets remain on edge, with traders bracing for Trump’s next big move on trade policy.