Dow Jones fell on Trump’s threats against more countries, tech stocks fared better, while the crypto market saw a bull run.
Stocks are down as Trump once again escalated trade tensions, while crypto is doing great. On Friday, July 11, the Dow Jones was down 286 points, or 0.64%, while the S&P 500 slipped 0.30%. The tech-heavy Nasdaq lost just 0.08% as crypto and tech stocks did relatively better.
Interestingly, Bitcoin (BTC) was much more resilient than the stock market. The token reached a new all-time high for a third day in a row at $118,856, and rallied 4% in 24 hours. Altcoins such as Ethereum (ETH) outperformed, with XRP (XRP), Dogecoin (DOGE), and Cardano (ADA) posting double-digit gains.
Trump threatens new tariffs on Canada
Investors were concerned about the effects of President Donald Trump’s latest threats against Canada. Trump announced a 35% tariff on Canadian goods, which currently face a 25% rate. Still, some goods will be exempt, including oil, gas, and potash.
These key industrial goods are currently regulated under the USMCA agreement and are subject to a 10% tariff. Canada is one of the largest U.S. trading partners and a key exporter of energy and raw materials to the country.
In other tariff news, reports surfaced that Vietnam’s government was surprised by Trump’s 20% tariff announcement against the country. According to Bloomberg, the country is hoping to bring the rate lower, possibly in the 10-15% range.
Vietnam is a major exporter to the U.S., with the third-largest trade surplus with the country. Over the years, it has taken over several export industries to the U.S. from China, with electronics, textiles, and footwear as major categories. Previous administrations saw this move as an advantage, as Vietnam is more geopolitically aligned with the U.S. than China.