Global Markets Plunge as Trump Tariff Threat Sparks Sell-Off
October 12, 2025 — Financial markets worldwide experienced sharp declines on Friday, October 10, after former President Donald Trump threatened to impose sweeping new tariffs on Chinese imports, with particular focus on rare earth minerals and technology materials critical to U.S. manufacturing.
Equity Markets Take Hit Across the Board
Major U.S. stock indices posted their worst session since April as investors fled risk assets:
- The S&P 500 fell 2.1%
- The Nasdaq Composite dropped 2.9%, leading losses among major indices
- The Dow Jones Industrial Average declined 1.5%
- London’s FTSE 100 closed down 81 points at 9,427, a 0.9% decline
Technology and growth stocks bore the brunt of the selling pressure, with the VIX volatility index surging as market uncertainty spiked. The sell-off reflected immediate concern about potential disruptions to global supply chains and the possibility of retaliatory measures from Beijing.
Cryptocurrency Markets in Freefall
Digital assets experienced dramatic losses as risk appetite evaporated:
- Bitcoin crashed nearly 10%, briefly falling below $110,000 before stabilizing around $113,559
- Ethereum tumbled 10.47% to $3,896
- BNB plunged 13.49%
- Solana dropped 12.64%
- XRP fell 20.72%
Social media reports on Reddit claim massive liquidations in the crypto market, with figures commonly cited in the $19-22 billion range, though some unverified claims suggest totals as high as $500 billion. Discussions also emerged regarding BlackRock’s Bitcoin ETP (IBIT) and concerns about how limited weekend trading hours might amplify volatility.
Safe Haven Assets Rally
As investors sought refuge from the turmoil, traditional safe-haven assets gained ground:
- Gold climbed 0.7%, pushing to new record highs amid compounding geopolitical tensions, including the ongoing Israel-Gaza conflict
- Silver attracted attention as investors diversified into precious metals
- Oil prices stabilized after recent volatility
Market Snapshot
| Asset | 24h Change | Notes |
|---|---|---|
| S&P 500 | ▼ 2.1% | Worst session since April |
| Nasdaq | ▼ 2.9% | Tech-heavy index hardest hit |
| Dow Jones | ▼ 1.5% | Broad-based decline |
| FTSE 100 | ▼ 0.9% | Closed at 9,427 |
| Bitcoin | ▼ ~10% | Stabilized around $113,559 |
| Ethereum | ▼ 10.5% | Trading at $3,896 |
| Gold | ▲ 0.7% | New record highs |
What This Means
The market reaction underscores deep investor concerns about escalating trade tensions and their potential impact on corporate earnings, particularly in technology sectors dependent on Chinese supply chains and rare earth materials. The simultaneous crash in cryptocurrencies suggests a broader flight from speculative assets as geopolitical uncertainty rises.
The rally in gold reflects classic risk-off behavior, with investors seeking traditional stores of value amid mounting global instability—both trade-related and geopolitical.
Market participants will be closely watching for official policy announcements and any response from Chinese authorities as trading resumes next week.
Editor’s Note: Claims of specific cryptocurrency liquidation totals and trading anomalies circulating on social media remain unverified. Readers are advised to consult official exchange data and regulated financial sources for confirmed figures.