Basri Caneri 
US President Donald Trump’s new tariffs on China, Mexico and Canada caused sharp fluctuations in global markets. Nasdaq 100 futures fell 2.7%, while S&P 500 lost 2%, Dow Jones 1.5% and Russell 2000 3.2%.
Trump announced 25% tariffs on imports from Canada and Mexico and 10% tariffs on products from China. George Saravelos, Head of FX Research at Deutsche Bank, said, “The tariff rates announced this weekend are three times higher than expected. The market will need to re-price the trade war risk premium.”
“Markets now have to not only take Trump’s trade tariffs seriously, but price them in with certainty,” commented Tobin Marcus of Wolfe Research, as concerns about US trade policies grow.
Big Drop in Crypto Markets: $450 Billion Exit
Uncertainty over Trump’s trade policies has hit not only stock markets but also cryptocurrency markets hard. In the last 24 hours, the total market capitalization fell 13% to $3.12 trillion, reaching its lowest level since mid-November.
Bitcoin (BTC) price fell as low as $94,211 after Trump’s trade war announcement. However, according to some analysts, such developments could be positive for Bitcoin in the long run. “A weaker dollar and falling US bond yields could push Bitcoin prices ‘violently’ higher in the long run,” said Jeff Park, Head of Bitwise Alpha Strategies.
As markets continue to price in the effects of Trump’s trade policies, high volatility is expected to continue in stock and crypto markets.
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