On Wednesday, U.S. equity futures and major cryptos fell sharply after President Donald Trump announced sweeping new tariffs on 185 countries, rattling global markets and triggering a broad risk-off move.
The Kobeissi Letter described the scene as “truly insane to watch,” noting that markets reversed violently as Trump unveiled tariff rates nation by nation during his “Make America Wealthy Again” event.
The S&P 500 lost more than $2 trillion in market capitalization within 15 minutes. Nasdaq 100 futures swung nearly 900 points from peak to trough before closing off session lows.
As of 8:45 PM ET, Dow Jones futures were down 1.26%, S&P 500 futures fell 1.16%, and Nasdaq 100 futures declined 1.20%.
The White House introduced a baseline 10% tariff on all imports, with significantly higher rates applied to select nations. China faces a 34% rate, while the European Union will be hit with 20%.
Trump described the measures as “reciprocal tariffs,” stating that U.S. rates will be set at half the level other countries impose on American goods.
Crypto markets have moved in lockstep with equities, a development that has played out over the last few financial quarters.
Bitcoin is down 2.3% to around $83,200, while Ethereum has shed 4.5% to $1,817, CoinGecko data shows.
“Very little reason to own risk here,” Joe McCann, founder and CEO of Asymmetric, told Decrypt. “Crypto is at the behest of macro and traditional markets at this point… Without a clear and distinct catalyst, crypto is simply going to trade like any other risk asset.”
McCann also flagged rising inflation expectations, with one-year inflation swaps climbing above 3.3%, and warned the tariff shock could push Q2 GDP into negative territory.
In Washington, a resolution led by Sen. Tim Kaine (D-Va) to revoke Trump’s emergency tariff powers over Canada picked up bipartisan support.
At least four Republican senators, including Rand Paul and Mitch McConnell, have indicated they will vote in favour. However, the measure is unlikely to pass the GOP-controlled House or survive a presidential veto.
The scale and unpredictability of the tariff announcement have shifted investor focus sharply back to macroeconomic headwinds, as markets reassess inflation trajectories, growth risks, and policy responses heading into Q2.
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