Bitcoin plunged below $90,000, erasing a 10% gain spurred by U.S. President Donald Trump's announcement of a strategic crypto reserve on Sunday. This development comes amid heightened global economic tensions. On Tuesday, President Trump declared the implementation of a 25% tariff on Canadian and Mexican imports, ending a pause that had lasted for months.
The ripple effects of these announcements were felt across international markets. Asia-Pacific stocks experienced declines on Tuesday, with Japan's Nikkei 225 retreating around 1.2% and South Korea's Kospi index slipping by 0.15%. Meanwhile, the regional Stoxx 600 managed to outperform the S&P 500 for February, even as the latter suffered its most significant drop since December 18, testing its 200-day moving average.
Trade tensions further intensified as China announced an additional 15% tariff on U.S. goods, targeting agricultural products and restricting exports to 15 American companies. In retaliation, Canada stated it would impose a 25% tariff on CAD 155 billion ($107 billion) worth of U.S. goods starting Tuesday.
Amidst this turbulence, technical analysts expressed concern over the S&P 500 potentially testing its 200-day moving average. As financial markets reeled from these geopolitical developments, German healthcare company Fresenius Medical Care revealed it has established its first-ever "tariff taskforce," closely monitoring the evolving situation.
In another significant economic move, President Trump announced TSMC's $100 billion investment to build five new fabrication facilities in Arizona, marking a substantial expansion in U.S.-based manufacturing capabilities. However, Trump's repeated accusations against Taiwan for allegedly stealing the U.S. chip manufacturing business have cast a shadow over this announcement.
Meanwhile, Singapore authorities detained three individuals last week on charges of deliberately misrepresenting the final destination of U.S.-manufactured servers, which likely contain Nvidia's highly coveted chips. This incident underscores the growing concern over the security and integrity of supply chains in the tech industry.
Despite these escalating trade tensions, an unnamed official emphasized that President Trump remains "focused on peace." The Trump administration is currently reassessing U.S. assistance to ensure it contributes to a resolution of the ongoing disputes.