Free Fall: Dow Futures Slide, Crypto Liquidations Top $1B

Global markets are experiencing turbulence after President Trump's announcement of new tariffs: 25% on Mexican and Canadian goods and 10% on Chinese imports, effective Monday at 12:01 a.m. EST.
U.S. stock futures reacted negatively, with Dow futures down 1.2%, S&P 500 futures down 1.9%, and Nasdaq futures down 2.7%.
The crypto market saw significant declines, with Bitcoin and Ethereum dropping 5% and 10% respectively, and Dogecoin and XRP each falling 19%, leading to over $1 billion in crypto liquidations.
The tariffs are expected to increase inflation, potentially leading the Federal Reserve to maintain higher interest rates, which could negatively impact borrowing and investor sentiment, particularly in the crypto sector.
Trading partners have announced retaliatory measures, with Canada imposing matching tariffs and Mexico and China planning countermeasures, contributing to currency fluctuations and market volatility.
Despite the market upheaval, some analysts believe the reaction may be overblown and expect trade tensions to potentially diffuse sooner than anticipated.