Market futures opened with heavy losses after U.S. President Donald Trump announced sweeping new tariffs on European imports, reigniting fears of a renewed transatlantic trade conflict. The announcement of a 10% tariff on goods from eight European Union countries immediately rattled investors, sending equities lower and accelerating a broad shift toward defensive assets.
U.S. equity futures slid across the board. The S&P 500 fell 0.9%, the Nasdaq Composite dropped 1.2%, and the Dow Jones Industrial Average declined 0.76%. The selloff reflected growing concern that trade restrictions could weigh on corporate earnings, disrupt supply chains, and undermine already fragile global growth expectations.
At the same time, volatility surged across other asset classes. Investors rapidly exited high-risk positions, particularly in leveraged trades, as uncertainty around trade policy and geopolitics intensified.
Tariffs Reignite Risk-Off Sentiment
The tariff announcement marked a sharp escalation in U.S.–EU trade tensions, raising the prospect of retaliatory measures from Europe and renewed pressure on global commerce. Market participants interpreted the move as a sign that trade policy may once again become a dominant macro risk, similar to the disruptions seen during earlier trade disputes.
Equity investors moved quickly to reduce exposure, particularly to cyclical and growth-sensitive sectors. Technology shares bore the brunt of the selling, contributing to the Nasdaq’s outsized decline. Futures markets reflected expectations of increased volatility, while liquidity thinned as traders rushed to reposition portfolios ahead of the U.S. cash market open.
The risk-off shift was amplified by concerns that tariffs could add inflationary pressure at a time when monetary policy remains restrictive, limiting central banks’ ability to cushion economic shocks.
Safe Havens Surge as Crypto Buckles
As equities fell, demand for traditional safe havens surged. Gold jumped more than 1%, climbing to a fresh all-time high of $4,660 per ounce, reinforcing its role as a primary hedge against geopolitical and policy risk. Silver surged even more dramatically, breaking above $94 per ounce for the first time in history and extending its gains to 31% since the start of 2026.
In contrast, the crypto market struggled to withstand the shock. Bitcoin briefly dropped by nearly $4,000 as forced liquidations swept through leveraged positions. More than $500 million in crypto trades were liquidated within a single hour, underscoring the sector’s sensitivity to sudden shifts in risk sentiment.
Overall, roughly $100 billion was wiped from total crypto market capitalization over the past 12 hours, according to market estimates. Analysts warn that further escalation in trade tensions could keep pressure on risk assets, while strengthening the appeal of hard assets such as precious metals.
