Markets Waver as Trump Announces New 100% Tariffs on China

Global markets experienced volatility as former US President Donald Trump announced a potential 100% tariff on Chinese imports, effective November 1, in retaliation for Beijing's restrictions on rare earth exports. The initial shock was partially offset by Trump's later social media post urging observers not to "worry about China," which tempered the immediate risk perception among investors and led to a recovery on Wall Street.

Investor attention is now divided between geopolitical tensions and key economic indicators. Statements from Federal Reserve officials are being scrutinized for clues on future US monetary policy, with a focus on balancing employment and price stability. Simultaneously, corporate earnings reports from major firms are becoming a critical barometer for market direction, as seen with JPMorgan Chase's announced $10 billion investment boosting its shares.

The uncertainty fueled a flight to safety, pushing gold to a new record high. In contrast, oil prices saw a slight decline. US stock indices, including the Dow Jones and Nasdaq, posted significant gains following Trump's moderated tone, though futures later turned negative. In Europe, markets rose on hopes of de-escalating trade tensions, while Asian markets, including Japan's Nikkei, fell due to the trade dispute and regional political shifts.

The situation highlights the fragile state of global trade relations and their direct impact on worldwide financial stability. The mixed market performance across the US, Europe, and Asia reflects the complex interplay of tariff threats, central bank policies, and corporate health, setting a cautious tone for the coming weeks.