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

Publication Date: 2025-07-15 07:29:10

U.S. stock futures experienced a downturn on Monday as President Donald Trump's latest tariff announcements, targeting Mexico and the European Union, reignited fears of a global trade war. Concurrently, Bitcoin surged to new record highs, and China's trade data surprised positively 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 escalated his trade offensive, announcing a 30% tariff on all imports from Mexico and the European Union, effective August 1. This new measure adds to existing tariffs on Japan, South Korea, Canada, and Brazil, alongside a 50% levy on copper imports.

The increased pressure comes ahead of a newly extended trade deal deadline, with less than three weeks remaining for negotiations. U.S. customs data indicates that tariff collections have surged to a record $113.3 billion in the first nine months of fiscal 2025.

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. As of 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 recorded their first weekly loss in four weeks on Friday, despite briefly hitting record highs earlier. This week also marks the commencement of Q2 earnings season, with major banks including JPMorgan Chase (NYSE:JPM), Wells Fargo (NYSE:WFC), and Citigroup (NYSE:C) scheduled to report. Investors will be closely monitoring commentary on tariff impacts, margin pressures, and forward guidance amidst an uncertain macroeconomic environment.

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 expanded to $114.77 billion, surpassing expectations and improving from May's $103.22 billion, signaling potential 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)

This improved trade performance is expected to support a positive Q2 GDP reading for China, scheduled for release on Tuesday. Analysts anticipate the report to show China exceeding its 5% annual growth target. The easing of U.S. chip restrictions also contributed to a rebound in rare earth exports in June, underscoring the sector's sensitivity to geopolitics and licensing frameworks.

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

Bitcoin (BTC) broke through the $120,000 mark on Monday, reaching a session high of $122,530 before settling at $122,020, up 3.7%. This rally coincides with "Crypto Week" in Washington, where Congress is debating several regulatory bills:

GENIUS Act
CLARITY Act
Anti-CBDC Surveillance State Act

These legislative proposals could define how stablecoins are issued, how crypto assets are classified, and how custody rules are applied. The proposals have garnered support from President Trump, who has publicly identified as the "crypto president" and advocated 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 concerns, and crypto regulation converging. Investors should maintain a defensive yet agile stance as earnings season, inflation data, and trade war headlines continue to shape sentiment across various asset classes.