Gold Soars as Global Markets Reel After Trump’s Shock Tariff Announcement

Gold prices surge past $4,000 as Trump announces 100% tariffs on China. Global stocks and crypto plunge amid renewed U.S.–China trade tensions.

Global Markets Rocked by Trump’s Latest Trade Bombshell

On October 10, 2025, U.S. President Donald Trump sent shockwaves through global markets after announcing a 100% tariff on all Chinese imports starting November 1, accusing Beijing of “hostile actions” to restrict exports of rare earth materials crucial to American industry.

This marks Trump’s toughest stance on China since April, when he unveiled his controversial “reciprocal tariffs” policy targeting multiple trading partners. His latest declaration signals a renewed escalation in the world’s most closely watched trade rivalry.

In a post on Truth Social, Trump hinted the tariffs could take effect even earlier than November 1, depending on China’s response. He also cast doubt on his upcoming meeting with Chinese President Xi Jinping in South Korea, stating there seemed to be “no real reason” for the two leaders to meet.

Gold Jumps, Stocks and Crypto Tumble

Trump’s announcement immediately rattled investors, triggering a global sell-off in equities and digital assets, while gold regained its shine as a safe haven.

• Gold Reclaims the Spotlight

After plunging from its record high of $4,060/oz on October 8 to around $3,940/oz a day later, gold prices bounced back sharply. By the close of trading on October 10 (early morning October 11, Vietnam time), spot gold surged to $4,018/oz.

Analysts say the metal’s rebound reflects growing investor anxiety about trade disruptions, inflationary pressure, and renewed volatility across financial markets.

• Wall Street’s Worst Day Since April

U.S. equities suffered their sharpest decline in months:

Dow Jones Industrial Average plunged 880 points (-1.9%) to 45,480.

S&P 500 lost 2.7%, closing at 6,553.

Nasdaq Composite tumbled 3.56% to 22,204.

Tech giants bore the brunt of the sell-off — Nvidia (-5%), AMD (-8%), and Tesla (-5%) all saw heavy losses.

Notably, the Nasdaq had opened at a new all-time high before the announcement, underscoring how swiftly investor sentiment flipped once the tariff news broke.

• Crypto Crash

Digital assets faced a brutal correction. Bitcoin fell nearly 14.3%, sliding from $122,500 to below $105,000, before recovering above $112,000 early October 11.
Several altcoins plunged by 30–90%, erasing billions in market capitalization within hours.

• Oil Joins the Sell-Off

Energy markets were not spared. WTI crude dropped 4.24% to $58.9/barrel, while Brent crude lost 3.82%, as fears of slowing global trade outweighed supply concerns.

Rare Earths — The Strategic Heart of the Conflict

Earlier this week, China announced new export controls requiring foreign entities to obtain special licenses before shipping any product containing more than 0.1% rare earth elements — a direct challenge to U.S. access to key industrial materials.

China currently supplies about 70% of the world’s rare earth metals, vital for producing smartphones, EV batteries, military hardware, and renewable energy technology.

In response, Beijing defended the restrictions, accusing Washington of “double standards” after Trump’s new tariff threat. 

Market Sentiment and the Safe-Haven Shift

Trump’s 100% tariff threat has unleashed a psychological shockwave across global financial markets. Investors are pulling money from risk assets — stocks, crypto, and industrial commodities — and rushing toward safe havens such as gold, the U.S. dollar, and Treasury bonds.

According to Reuters, the S&P 500 and Nasdaq both recorded their steepest daily drops since April, reflecting the depth of uncertainty surrounding trade policy and global growth.

Meanwhile, analysts at Livemint noted that gold’s current rally is the strongest since 1979, raising the question: Will the surge continue as Trump pushes ahead with his tariff offensive? 

What Comes Next? Market Scenarios

✅ Bullish Outlook

If gold stabilizes above $4,000, it may test higher resistance levels in the short term.

Central banks and institutional funds could expand gold holdings amid mounting global uncertainty.

A diplomatic compromise or partial rollback of tariffs could trigger a technical rebound in equities.

⚠️ Bearish Risks

A Chinese retaliation could freeze global supply chains, exacerbating inflation and slowing growth.

Persistent trade tensions may drive a prolonged bear market for U.S. tech stocks.

If international allies push back against Trump’s aggressive stance, domestic political pressure could intensify.

Political Overhang: A Government Still in Gridlock

The U.S. government remains shut down for the 10th consecutive day, as Republicans and Democrats fail to reach a budget agreement. The political paralysis in Washington adds another layer of uncertainty to an already volatile financial landscape.

Conclusion

President Trump’s renewed tariff threat has injected fresh turmoil into global markets. Gold has once again proven its status as a safe-haven asset, while stocks, crypto, and oil all feel the sting of uncertainty.

As the U.S.–China trade conflict enters a new phase, investors are bracing for more volatility. Whether this escalation marks the beginning of a prolonged trade war or a high-stakes negotiation tactic remains to be seen.

For now, one thing is clear — gold is gleaming again, and markets are on edge.

FAQs

1. Why did President Trump announce a 100% tariff on China?
He accused China of restricting rare earth exports and engaging in unfair trade practices that threaten U.S. industries.

2. How has the announcement impacted global markets?
It triggered a sharp sell-off in stocks and cryptocurrencies while boosting gold and the U.S. dollar.

3. Could gold prices keep rising?
Yes. If geopolitical risks and trade tensions persist, gold may continue its upward momentum as investors seek safety.

4. What’s next for the U.S.–China trade relationship?
Much depends on whether Beijing retaliates.