Markets Slide as Tariff Shock Returns; Bitcoin Hits Record, China Trade Surplus Grows

U.S. stock futures dipped Monday as President Donald Trump's latest round of tariff announcements targeting Mexico and the European Union stoked fears of a renewed global trade war. Meanwhile, Bitcoin soared to fresh record highs, and China's trade data surprised to the upside ahead of its Q2 GDP release.

Below are the four key developments shaping market sentiment to start the week.

1. Trump Imposes 30% Tariffs on Mexico and EU

Over the weekend, President Trump intensified his trade offensive, announcing a 30% tariff on all imports from Mexico and the European Union, effective August 1. This adds to recent tariffs on Japan, South Korea, Canada, and Brazil, as well as a 50% levy on copper imports.

The pressure escalates ahead of the newly extended trade deal deadline, with just under three weeks left to negotiate. U.S. customs data revealed that tariff collections surged to $113.3 billion in the first nine months of fiscal 2025—a record high.

With global supply chains exposed, monitor corporate-level fallout using the Up/Down Grades by Company API to stay ahead of analyst sentiment shifts as earnings begin.

2. U.S. Futures Retreat Ahead of Earnings Season

Markets opened the week under pressure. At 02:55 ET, futures were down:

• S&P 500: -35 pts (-0.6%)

• Nasdaq 100: -120 pts (-0.5%)

• Dow Jones: -250 pts (-0.6%)

The major Wall Street indices posted their first weekly loss in four weeks on Friday, despite briefly hitting record highs earlier.

This week also marks the start of Q2 earnings season, with banks including JPMorgan Chase (NYSE:JPM), Wells Fargo (NYSE:WFC), and Citigroup (NYSE:C) set to report. Investors will be listening closely for commentary on tariff impacts, margin pressures, and forward guidance in a still-uncertain macro backdrop.

For a preview of potential EPS volatility, track company ratings and financial strength using the Company Rating API.

3. China's Trade Surplus Beats, Exports Rebound

China's June trade surplus widened to $114.77 billion, beating expectations and improving on May's $103.22 billion, amid signs of trade normalization with the U.S.

• Exports rose 5.8% YoY (vs 5% expected)

• Imports increased 1.1% YoY (slightly below forecast, but reversing May's 3.4% drop)

The improved trade performance is likely to support a positive GDP reading for Q2, scheduled for release Tuesday. Analysts expect the report to show China exceeding its 5% annual growth target.

The easing of U.S. chip restrictions also allowed rare earth exports to rebound in June, highlighting the sector's sensitivity to geopolitics and licensing frameworks.

4. Bitcoin Surges to New All-Time Highs at Start of “Crypto Week”

Bitcoin (BTC) smashed through the $120,000 mark Monday, hitting a session high of $122,530 before settling at $122,020, up 3.7%.

The rally coincides with “Crypto Week” in Washington, where Congress is debating a suite of regulatory bills:

• GENIUS Act

• CLARITY Act

• Anti‑CBDC Surveillance State Act

These bills could define how stablecoins are issued, how crypto assets are classified, and how custody rules are applied.

The proposals have support from President Trump, who has called himself the "crypto president" and pushed for industry-favorable policy reform.

Stay updated on market-moving news in the crypto sector via the Crypto News API, and track real-time price performance with the Cryptocurrency Daily API.

Final Takeaway

Markets are entering the week cautiously—with geopolitics, inflation, and crypto regulation all colliding. Investors should remain defensive yet agile as earnings season, inflation data, and trade war headlines shape sentiment across asset classes.