The United States has reignited the trade war with China by imposing tariffs of up to 245% on certain Chinese products, targeting their dependence on critical minerals.
In response, financial markets have wavered: gold has soared above $3,300 per ounce while the dollar has weakened, confirming a shift towards safe-haven assets.
Technology stocks, notably Nvidia, have been heavily affected with an estimated loss of $5.5 billion due to export restrictions to China; Bitcoin, on the other hand, remains correlated with tech stocks.
Revived tensions between China and the United States
The trade relations between the United States and China have reached a new level of confrontation. On Tuesday, the White House announced the imposition of tariffs reaching up to 245% on certain Chinese products. This drastic decision, following a series of Chinese retaliatory measures, including the export ban on strategic metals such as gallium and germanium, reignites the economic war between the two powers.
China is now facing tariffs of up to 245% on imports to the United States in response to its retaliatory measures.
La Maison Blanche
At the root of this American offensive is an investigation launched by presidential decree into the risks posed by foreign dependence on critical minerals for national security. The message is clear: Washington no longer wants to be vulnerable to China’s grip on supply chains essential to high technology.
Market retreats, gold breaks records
In this atmosphere of extreme tensions, the markets have reacted sharply. Investors, in search of security, have flocked to gold, propelling the precious metal above $3,300 per ounce for the first time in history, with an increase of more than 2% in a single session.
The US dollar, on the other hand, has experienced a sharp decline. The dollar index (DXY) has dropped below 100, a sign of increasing distrust in the greenback. Meanwhile, the euro has strengthened to $1.13 and the Japanese yen to 142 units per dollar, illustrating a brutal rebalancing of monetary flows.
American tech under shock, Nvidia in the front line
American technology stocks have been the main victims of this escalation. Nasdaq futures plunged by more than 2% before opening, due to sector panic fueled by the new export restrictions.
Nvidia, a symbol of American supremacy in the semiconductor and artificial intelligence sectors, saw its stock drop by 7% in pre-market trading. The cause: an estimated revenue loss of $5.5 billion due to new limitations imposed on the sale of AI chips to China. A blow to the entire industry, a significant portion of whose revenue comes from the Chinese market.
Bitcoin retreats, far from safe-haven status
Unlike gold, Bitcoin did not benefit from this retreat to safe-haven assets. It fell to $83,000 before recovering to $84k, once again confirming its strong correlation with US technology stocks rather than defensive assets.
In a context where geopolitical tensions are redefining the lines of global trade, Bitcoin’s status as a speculative asset still distances it from traditional capital protection strategies. Investors now favor tangible and proven assets when global stability wavers.
