The U.S. government recently announced an additional 25% tariff on goods from Canada and Mexico, a move that has prompted a strong reaction in global markets. As of press time, U.S. stock index futures have generally opened lower, with Nasdaq futures down over 2.4%, S&P 500 futures down over 1.9%, and Dow futures down 1.35%. Meanwhile, the dollar index rose more than 1%, while the euro fell against the dollar by over 1%.
Not only did the U.S. stock market react strongly, but Japanese and South Korean markets also suffered significant losses. The Nikkei 225 index opened down 1.62%, with Japanese automotive stocks generally falling, as Nissan dropped more than 10% at one point. South Korean stocks were not spared, with the KOSPI composite index falling by more than 3% at one point. In China, the Hang Seng Index opened down 0.87%, and the Hang Seng Tech Index also fell 0.51%.
The cryptocurrency market also was not immune to the impact of this global economic turbulence. Bitcoin fell below the $100,000 mark, at one point dropping to around $96,000, a fall of over 3%. Mainstream cryptocurrencies such as Ethereum, SOL, XRP, and Dogecoin also generally declined, with some currencies falling more than 10%.
In response, BTC Markets CEO Caroline Bowler stated that Trump's tariff policies might exacerbate market uncertainty, especially concerning fears of stagflation and economic recession, potentially affecting all cryptocurrencies including Bitcoin.
This tariff decision is seen as an escalation of the Trump administration's "trade war." According to CCTV news, U.S. President Trump has signed an order to impose a 25% tariff on goods from Canada and Mexico, to take effect on February 4. The White House stated that if the two countries retaliate, the U.S. may further increase tariff intensity.
In response, the Canadian government has announced it will impose a 25% retaliatory tariff on U.S. products worth 155 billion Canadian dollars, with the measures, including goods such as beverages, cosmetics, and paper products, to take effect on February 4. Canadian Finance Minister LeBlanc stated this move is the first phase of Canada's countermeasures against U.S. tariffs, with more categories of U.S. goods to be targeted with additional tariffs in the future.
Mexico also indicated that it would implement countermeasures, with Mexican President Sheinbaum announcing the activation of "Plan B", with a list of specific tariffs being formulated.
On the EU side, the European Commission expressed regret over the U.S. tariff measures, arguing that they would cause unnecessary economic disruption and increase inflation. The EU remains committed to promoting economic growth through low tariffs and maintaining a rules-based international trade system.
Furthermore, the Trump administration plans to impose tariffs on the EU and recently held talks with Canadian Prime Minister Trudeau. In an interview on February 2, Trump stated that as the EU had failed to accept U.S. trade demands, tariff measures would be applied to EU goods, including cars and agricultural products. Although a specific timeline has not been set, this move could further intensify global trade tensions.
