Stocks sold off sharply on Friday 28th March 2025, pressured by growing uncertainty on U.S. trade policy as well as a grim outlook on inflation
The Dow Jones Industrial Average closed down 715 points at 41,583. The S&P 500 lost 1.97% to close 5,580 ending the week down for the fifth time in the last six weeks. The Nasdaq Composite plunged 2.7% to 17,322.
Shares of several technology giants also fell putting pressure on the broader market. Google-parent Alphabet lost 4.9%, while Meta and Amazon each shed 4.3%.
This week, the S&P 500 lost 1.53%, while the 30-stock Dow shed 0.96%. The Nasdaq declined by 2.59%. With this latest losing week, Nasdaq is now on pace for a more than 8% monthly decline, which would be its worst monthly performance since December 2022.
Dow Jones one-day chart (28th March 2025)
Dow Jones one-day chart (28th March 2025)
Stocks took a leg lower on Friday after the University of Michigan’s final read on consumer sentiment for March 2025 reflected the highest long-term inflation expectation since 1993.
Friday’s core personal consumption expenditures price index also came in hotter-than-expected, rising 2.8% in February and reflecting a 0.4% increase for the month, stoking concerns about persistent inflation.
Economists had reportedly been looking for respective numbers of 2.7% and 0.3%. Consumer spending accelerated 0.4% for the month, below the 0.5% forecast, according to fresh data from the Bureau of Economic Analysis.
The market is getting squeezed by both sides. There is uncertainty about reciprocal tariffs hitting the major exporting sectors like tech alongside concerns about a weakening consumer facing higher prices
Trump’s tariffs push will hit the U.S. harder than Europe in the short term, it has been reported.
Japan’s Nikkei enters correction as Trump’s tariff assault drives sell-off in Asia markets
Consumer spending accelerated 0.4% for the month, below the 0.5% forecast, but personal income posted a 0.8% rise, against the estimate for 0.4%.
If we were to combine these higher inflation figures with Trump’s tariffs and the unrest Trump is creating around the world and of the tensions with Russia and China – it doesn’t bode well for the future!
U.S. tech giants are making bold strides in the development of humanoid robots, signalling a transformative shift in the robotics industry
Companies like Tesla, Google, Microsoft, and Nvidia are investing heavily in this cutting-edge technology, aiming to create machines that mimic human movement and behaviour.
These humanoid robots are envisioned to revolutionise industries ranging from manufacturing to healthcare, offering solutions to labor shortages and enhancing productivity.
Tesla’s Optimus project is a prime example of this ambition. CEO Elon Musk has announced plans to produce thousands of these robots, designed to perform repetitive and physically demanding tasks.
Optimus robots are expected to integrate seamlessly into factory settings, reducing the need for human intervention in hazardous environments.
Similarly, Boston Dynamics, known for its agile robots, continues to push the boundaries of what humanoid machines can achieve, focusing on tasks that require precision and adaptability.
The integration of artificial intelligence (AI) is a driving force behind these advancements. AI enables robots to learn from their environments, adapt to new tasks, and interact with humans in more intuitive ways.
Companies like Nvidia are leveraging their expertise in AI and machine learning are helping to develop robots capable of complex decision-making and problem-solving.
However, challenges remain. High production costs, limited battery life, and safety concerns are significant hurdles that need to be addressed before humanoid robots can achieve widespread adoption.
Despite these obstacles, the potential benefits are immense. From assisting the elderly to performing intricate surgeries, humanoid robots could redefine the boundaries of human capability.
As U.S. tech giants continue to innovate, the race to dominate the humanoid robotics market intensifies.
Tesla Optimus Gen 2
With China and other nations also making significant investments, the competition is fierce. Analysts warn that U.S. firms could lose out to China, which aims to replicate its success with electric vehicles in the robotics space race.
The future of humanoid robots promises to be a fascinating blend of technology, creativity, and global collaboration
U.S. companies that may benefit from this AI humanoid tech advancement
Tesla: Known for its Optimus humanoid robot project, Tesla is pushing boundaries in robotics and AI.
Google (Alphabet): A leader in AI and robotics research, with projects aimed at enhancing humanoid capabilities.
Microsoft: Investing in AI technologies that support robotics and automation.
Nvidia: Provides advanced AI chips and systems crucial for humanoid robot development.
Boston Dynamics: Famous for its agile robots like Atlas, focusing on precision and adaptability.
Agility Robotics: Creator of Digit, a humanoid robot designed for logistics and manufacturing.
Meta (Facebook): Exploring humanoid robots for social and interactive applications.
Apple: Investing in robotics and AI for potential humanoid advancements.
Amazon: Developing robots like Astro for home monitoring and other tasks.
Figure AI: Innovating humanoid robots like Figure 02 for various industries.
Bill Gates on AI
Bill Gates has shared some fascinating insights about AI recently. He reportedly believes that within the next decade, AI will transform many industries, making specialised knowledge widely accessible.
For example, he predicts that AI could provide high-quality medical advice and tutoring, addressing global shortages of doctors and educators.
Gates has also described this shift as the ‘age of free intelligence,’ where AI becomes a commonplace tool integrated into everyday life. While he acknowledges the immense potential of AI to solve global challenges – like developing breakthrough treatments for diseases and innovative solutions for climate change – he also recognises the disruptive impact it could have on jobs and the workforce.
Despite these concerns, Gates remains optimistic about AI’s ability to drive innovation and improve lives.
He has emphasised that certain human activities, like playing sports or hosting talk shows, will likely remain uniquely human.
However, despite all these predictions from powerful tech leaders – it does beg the question, do these ultra rich CEOs predict the future, or simply make it?
What if Quantum Physics coincides and collides with the ‘full’ arrival of AI and humanoid robots
Quantum computing could enhance the capabilities of AI-powered robots by solving complex optimisation problems, improving machine learning algorithms, and enabling real-time decision-making.
For instance, robots equipped with quantum sensors could navigate intricate environments, detect subtle changes in their surroundings, and interact with humans in more intuitive ways.
This fusion could revolutionise industries such as healthcare, manufacturing, and space exploration. Imagine humanoid robots performing intricate surgeries with precision, managing large-scale logistics, or exploring distant planets with advanced problem-solving abilities.
However, this convergence also raises ethical and societal questions. The potential for such powerful technologies to disrupt industries, impact employment, and challenge privacy norms must be carefully managed.
Collaboration between scientists, policymakers, and ethicists will be crucial to ensure these advancements benefit humanity as a whole.
The intersection of quantum physics, AI, and humanoid robotics is not just a technological milestone – it’s a glimpse into a future where the boundaries of human capability and machine intelligence blur.
It’s an exciting, albeit complex future humans are creating.
But will AI surpass human intelligence – and if it does what then for the human civilisation?
Trump’s tariffs have been a cornerstone of his trade policy, aimed at protecting American industries and reducing trade deficits
These measures include tariffs on steel, aluminum, and a wide range of goods from countries like China, Canada, and the European Union.
While supporters argue that these tariffs have bolstered domestic manufacturing and created jobs, critics highlight the retaliatory tariffs imposed by other nations, which have affected American exporters.
President Donald Trump said he will soon announce tariffs targeting automobiles and pharmaceuticals.
Trump later added the timber and semiconductor industries to his list.
It was unclear whether the newly announced sector-specific tariffs would take effect after the tit-for-tat ‘reciprocal tariffs’ – which are set to take effect on for 2nd April 2025
The president’s latest comments at a Cabinet meeting came hours after he unveiled a plan to place 25% tariffs on all countries that buy oil and gas from Venezuela.
Trump’s tariffs have had widespread economic effects, both domestically and globally
Higher Prices for Consumers
Tariffs increase the cost of imported goods, which often leads to higher prices for consumers. This can reduce purchasing power and affect living standards.
Impact on Businesses
Companies relying on imported materials face higher production costs due to tariffs. Some businesses may pass these costs onto consumers, while others might struggle to remain competitive.
Retaliatory Measures
Countries affected by U.S. tariffs often impose their own tariffs on American goods. This can hurt U.S. exporters and lead to trade wars.
Economic Growth
Studies suggest that tariffs can reduce GDP growth. For example, the U.S. GDP has been estimated to decrease by 0.4% due to these measures.
Employment
While tariffs aim to protect domestic jobs, they can also lead to job losses in industries affected by higher input costs or reduced export opportunities.
Global Trade Dynamics
Tariffs disrupt international trade relationships, leading to uncertainty and reduced investment in affected sectors.
These measures have sparked retaliatory tariffs from other countries, creating a complex web of trade disputes further sowing chaos and unrest.
Markets have reacted negatively to Trumps tariffs.
One thing is certain regarding the imposition of Trump’s tariffs – consumers suffer!
China’s embrace of open-source artificial intelligence (AI) is revolutionising the global AI landscape, challenging traditional notions of innovation and competitiveness in this rapidly evolving field.
Traditionally, the AI sector has been dominated by proprietary models and closed-source systems, particularly in the U.S.
However, China has made a strategic pivot towards open-source initiatives, driven by trailblazers like the AI startup DeepSeek.
DeepSeek’s R1 model, released earlier this year, has become a symbol of China’s open-source movement. Distributed under the permissive MIT licence, the R1 model allows unrestricted use, modification and distribution.
This approach has disrupted traditional business models by democratising access to cutting-edge AI tools. Companies from tech giants like Baidu and Tencent to emerging players like ManusAI have followed suit, releasing their own open-source models and fostering a collaborative environment for AI innovation.
This shift is seen by some as China’s ‘Android moment’ in AI – a reference to the impact of Google’s open-source Android operating system on the mobile app ecosystem.
The move towards open-source has enabled rapid cost reductions, increased accessibility, and accelerated product development. Chinese firms have leveraged these advantages to narrow the perceived technological gap with the U.S., with some analysts suggesting that the disparity has shrunk from years to mere months.
Despite these advancements, the open-source approach also raises questions about intellectual property, security, and sustainable business models.
While it has catalysed innovation, it remains to be seen whether open-source strategies can sustain long-term competitiveness against well-funded proprietary systems.
China’s open-source embrace exemplifies a bold shift in AI strategy, emphasizing collaboration and accessibility over exclusivity.
This paradigm shift could redefine global dynamics in artificial intelligence, fostering a more inclusive and innovative future for the industry.
This news has sparked a surge in TMTG’s stock, which rose by approximately 9% in after-hours trading, despite a challenging year that saw the stock down 38% prior to this development. Will the gain hold?
The ETFs, branded under TMTG’s fintech arm are set to focus on a ‘Made in America’ theme, incorporating a mix of digital assets like Bitcoin and Cronos (Crypto.com’s native token) alongside traditional securities.
Crypto.com will play a pivotal role in this venture, providing backend technology, custody, and cryptocurrency supply for the ETFs.
The products are expected to be available internationally, including in Europe and Asia, through major brokerage platforms and the Crypto.com app, which boasts a global user base of 140 million.
This partnership marks another step in TMTG’s foray into the digital asset space, following previous ventures into non-fungible tokens (NFTs) and meme coins.
The move also highlights the growing intersection between traditional finance and cryptocurrency, as companies seek to innovate and diversify their offerings in a competitive market.
While the announcement has generated excitement, it also raises questions about the regulatory landscape and the sustainability of such ventures.
As TMTG and Crypto.com prepare to launch these ETFs later this year, pending regulatory approval, the financial world will be watching closely to see how this collaboration unfolds and its impact on the broader market
Major corporations like Nike and Accenture, for example have recently reported significant challenges stemming from these policies. Nike has warned of a sharp decline in sales for the current quarter, attributing this to tariffs and weakened consumer sentiment.
Similarly, Accenture has experienced a reduction in revenue due to cuts in U.S. government contracts, highlighting the ripple effects of reduced federal spending. It is a good guide to U.S. consumer sentiment.
The tariffs, part of a broader economic strategy, aim to protect domestic industries but have led to higher production costs and strained international trade relations.
The European Union has postponed its own tariffs on U.S. goods, seeking to negotiate a more favourable agreement and mitigate potential economic fallout.
These developments underscore the delicate balance between protecting domestic interests and maintaining a respectable global economic position.
Some argue that the U.S. tariffs and budget cuts may ultimately harm both businesses and consumers, as higher costs are passed down the supply chain.
As the 2nd April 2025 implementation date for new tariffs approaches, businesses and policymakers alike face mounting pressure to address these challenges and find solutions that support economic growth while minimizing adverse effects.
The coming months will be crucial in determining the long-term impact of these policies.
In February 2025, UK government borrowing reached £10.7 billion, significantly exceeding the £6.5 billion forecast by the Office for Budget Responsibility (OBR)
This marks the fourth-highest borrowing figure for February since records began in 1993. The unexpected rise in borrowing has intensified pressure on Chancellor Rachel Reeves ahead of her upcoming Spring Statement.
The increase in borrowing is attributed to higher public sector spending, which totaled £93 billion for the month, driven by social benefits and investment expenditures.
Meanwhile, government receipts, primarily from taxes, rose to £87.7 billion but failed to offset the spending surge.
Over the financial year to date, borrowing has climbed to £132.2 billion, surpassing the OBR’s earlier projection of £127.5 billion for the entire fiscal year.
Economists warn that the higher-than-expected borrowing could challenge the Chancellor’s fiscal rules, which aim to reduce debt as a share of GDP by 2029/30.
With limited options, Reeves faces tough decisions, including potential spending cuts and tax adjustments, to maintain fiscal discipline.
The borrowing figures underscore the delicate balance between managing public finances and addressing economic pressures.
As the Spring Statement approaches, all eyes are on the Chancellor’s strategy to navigate these challenges while maintaining economic stability.
The Chancellor has allowed herself to be backed into a corner.
Japan’s core inflation rate rose to 3% in February, exceeding market expectations of 2.9%
This marks the 35th consecutive month that inflation has remained above the Bank of Japan’s 2% target.
While the figure is slightly lower than January’s 3.2%, it reflects persistent price pressures, driven by rising food and wage costs. Government subsidies for fuel helped ease the overall inflation rate to 3.7%, down from January’s 4%.
The Bank of Japan has maintained its interest rate at 0.5%, but the data strengthens the case for potential rate hikes in the coming months as inflationary trends continue to challenge households.
The Bank of England has warned economic and global trade uncertainty has ‘intensified’ as it held UK interest rates at 4.5%.
This decision, supported by eight out of nine committee members, reflects the Bank’s cautious approach amidst ongoing economic challenges.
The move comes as inflation remains above the Bank’s 2% target, with the UK Consumer Prices Index (CPI) inflation recorded at 3% in January 2025. Rising energy costs, water bills, and transportation fares have contributed to the persistent inflationary pressures.
Despite these challenges, the UK economy has shown mixed signals, with a slight GDP growth of 0.1% in the final quarter of 2024, followed by a contraction of 0.1% in January 2025.
The BoE’s decision to hold rates steady aims to balance the need to control inflation while supporting economic stability. Governor Andrew Bailey reportedly emphasised the importance of monitoring both global and domestic economic developments closely (that’s useful then – what a good idea).
The MPC’s cautious stance reflects concerns over global trade uncertainties and the potential impact of geopolitical tensions.
While the decision provides some relief to borrowers, it leaves savers and businesses navigating a landscape of economic uncertainty.
Analysts predict that the Bank of England may consider rate cuts later in the year, depending on inflation trends and economic performance.
For now, however, the focus remains on maintaining stability in a forever fast challenging environment.
The Federal Reserve has opted to maintain its federal funds rate within the range of 4.25% to 4.5%, a decision that aligned with market expectations
This comes amidst increasing uncertainty surrounding the economic landscape. While the Fed’s current stance is to hold interest rates steady, it has reiterated its intention to implement two rate cuts later this year – a prospect that has garnered significant attention and appreciation from investors.
Fed Chair Jerome Powell reportedly expressed measured optimism about the state of the U.S. economy during his press conference.
He highlighted the strength of labour markets, and the progress made toward reducing inflation, which, although still above the 2% target, has shown improvement.
Powell also addressed potential short-term impacts of tariffs but downplayed their long-term influence on inflation.
Financial markets responded positively to the announcement, with major stock indices such as the Dow, S&P 500, and Nasdaq rallying after the recent slump.
This reflects investor confidence in the Fed’s ability to navigate economic challenges while supporting growth. However, economists warn of potential risks, including stagflation, as uncertainties tied to Trump’s tariffs and consumer spending persist.
The decision underscores the Fed’s balancing act between fostering economic stability and addressing inflationary pressures, leaving room for cautious optimism as the year unfolds.
Chinese tech giant Baidu has released two new free-to-use artificial intelligence models as it vies to regain its leading position in the country’s fiercely competitive AI space
The Baidu models launched on Sunday 16th March 2025 included the company’s first reasoning-focused model and come ahead of plans to move towards an open-source strategy.
However, analysts reportedly said that while the release of the models is a positive development for Baidu, they also highlight how it is playing catch up as its Ernie bot – one of China’s earliest versions of a ChatGPT-like chatbot – struggles to gain widespread adoption.
‘The new models make Baidu more competitive since the company has been lagging behind in a reasoning model release’, one expert is reported as saying.
A reasoning model is a large language model that breaks down tasks into smaller pieces and considers multiple approaches before generating a response. It is designed to process complex problems in a similar way to humans.
Chinese startup DeepSeek upended the global AI race and transformed China’s ecosystem in January when it released its R1 reasoning model, which rivalled American competitors despite costing a fraction of the price.
BYD, a leading name in the electric vehicle (EV) industry, has unveiled groundbreaking super-charging technology that could redefine EV adoption
The new ‘super e-platform’ boasts peak charging speeds of 1,000 kilowatts (kW), enabling vehicles to gain a range of 400 kilometers (249 miles) in just five minutes.
This innovation brings EV charging times closer to the convenience of refueling traditional gasoline vehicles.
Charging speeds of 1,000 kW would be twice as fast as Tesla’s superchargers whose latest version offers up to 500 kw charging speeds. Fast-charging technology has been key to increasing EV adoption as it is seen to help assure EV drivers’ concerns over being able to charge their cars quickly.
The announcement, reportedly made at BYD’s Shenzhen headquarters, marks a significant leap in addressing ‘charging anxiety’- a key concern for EV users. Founder Wang Chuanfu emphasised the company’s commitment to making EV charging as quick and seamless as possible.
This is the first time the industry has achieved megawatt-level charging power, setting a new benchmark.
To complement this technology, BYD plans to build over 4,000 ultra-fast charging stations across China.
The initial rollout will feature the super e-platform in two new models: the Han L sedan and Tang L SUV, priced from 270,000 yuan ($37,328). These vehicles will pioneer the use of this cutting-edge charging system.
As competition in the EV market intensifies, BYD’s innovation positions it as a formidable player, challenging established giants like Tesla and paving the way for a more electrified future.
Artificial General Intelligence (AGI), a form of AI capable of matching or surpassing human intelligence across all tasks, is expected to emerge within the next five to ten years, according to Demis Hassabis, CEO of Google DeepMind.
Speaking recently, Hassabis highlighted the advancements in AI systems that are paving the way for AGI.
While current AI excels in specific domains, such as playing complex games like chess or Go – it still lacks the ability to generalise knowledge and adapt to real-world challenges.
But the advancements made in AI chatbots such as ChatGPT from OpenAI and DeepSeek have showcased remarkable development, and at speed too. Applying AI to work environments, science and domestic tasks is forever expanding.
Hassabis emphasised that significant research is still required to achieve AGI. The focus lies on improving AI’s understanding of context and its ability to plan and reason in dynamic environments.
Multi-agent systems, where AI entities collaborate or compete, are seen as a promising avenue for development.
These systems aim to replicate the intricate decision-making processes humans exhibit in complex scenarios.
The implications of AGI are profound, with potential applications spanning healthcare, education, and beyond.
However, its development also raises ethical and societal questions, including concerns about control, safety, and equitable access.
While the timeline remains speculative, Hassabis’s insights underscore the accelerating pace of AI innovation, bringing humanity closer to a future where machines and humans collaborate in unprecedented ways.
Gold has reached a historic milestone, breaking the $3,000 per ounce barrier for the first time in history
This remarkable surge reflects a confluence of global economic uncertainties, geopolitical tensions, and shifting investor sentiment.
The rally has been fueled by a variety of factors. Central banks worldwide have significantly increased their gold reserves, seeking a hedge against inflation and a safeguard from potential economic sanctions.
This trend gained momentum following the freezing of Russian central bank assets in 2022, which underscored the vulnerabilities of holding reserves in foreign currencies.
Additionally, escalating trade tensions and fears of a global recession have driven investors toward safe-haven assets like gold. The U.S. administration’s aggressive tariff policies have amplified market volatility, prompting a flight to stability.
Gold-backed exchange-traded funds (ETFs) have also seen substantial inflows, further bolstering demand.
The psychological significance of crossing the $3,000 mark cannot be understated. It signals a shift in market dynamics, with gold outperforming many traditional asset classes.
Analysts predict that, barring a dramatic change in economic conditions, the upward trajectory may continue, potentially reaching new highs in the coming months.
This milestone underscores gold’s enduring appeal as a store of value in turbulent times, cementing its status as a cornerstone of global financial markets.
While some experts predict gold could reach $3,500 by the third quarter of 2025, others are more optimistic about the $4,000 mark being attainable in the near future.
The UK economy faced an unexpected contraction of 0.1% in January, marking a surprising downturn following a 0.4% growth in December 2024
This decline, reported by the Office for National Statistics (ONS), has raised concerns about the nation’s economic trajectory, particularly as the government prioritizes boosting growth.
The contraction was primarily attributed to a slowdown in manufacturing, alongside weak performances in oil and gas extraction and construction.
The ONS noted that while the economy shrank in January 2025, the broader three-month period still showed modest growth of 0.2%. But never-the-less, it remains one of weak growth.
Interestingly, the services sector provided a glimmer of hope, driven by robust retail activity, especially in food stores, as consumers opted to eat and drink at home more frequently. This sector’s resilience partially offset the declines in other areas.
The timing of this economic dip is particularly significant, as it precedes the Chancellor’s Spring Statement, where even more government spending cuts are expected to be outlined.
Chancellor Rachel Reeves acknowledged the challenges and reportedly commented that the global economic landscape has shifted, and the UK is feeling the repercussions. She reiterated the government’s commitment to accelerating efforts to stimulate growth and reform public services.
However, the unexpected contraction has sparked criticism from opposition parties, who have labeled the government’s policies as ineffective in fostering sustainable economic growth.
The Shadow Chancellor reportedly described the government as a ‘growth killer,’ citing high taxes and restrictive employment legislation as barriers to business confidence and therefore growth.
As the UK navigates these economic headwinds, the focus will remain on the Chancellor’s upcoming measures and their potential to steer the economy back on track.
The January figures serve as a stark reminder of the fragile state of the UK economy and the challenges that lie ahead.
The S&P 500 has officially entered correction territory, marking a significant shift in market sentiment
The index, widely regarded as a benchmark for the health of large U.S. companies, has fallen over 10% from its February 2025 peak.
This downturn follows a series of escalating trade tensions, with President Donald Trump announcing a 200% tariff on European alcoholic products in response to the European Union’s levies on American whiskey.
The correction reflects growing investor concerns over the potential economic fallout of these trade disputes. The Nasdaq Composite, another major index, had already entered correction territory earlier, signaling broader market unease. The Dow Jones Industrial Average also experienced a decline, marking its fourth consecutive day of losses.
Economists warn that the ongoing trade war could exacerbate fears of a recession, as businesses face rising costs and uncertainty. The Federal Reserve’s recent inflation reports suggest price growth remains elevated, adding to the challenges.
While corrections are not uncommon, they often serve as a wake-up call for investors. Historically, only a fraction of corrections evolve into bear markets, but the current environment of trade tensions and inflationary pressures has heightened concerns.
As markets navigate these turbulent waters, all eyes remain on policymakers and their next moves to stabilise the economy.
The announcement of Donald Trump’s Strategic Bitcoin Reserve has sparked a wave of criticism and debate, with detractors likening the initiative to ‘a pig in lipstick’ – a superficial attempt to dress up a flawed concept.
The reserve, which aims to stockpile or create a strategic reserve Bitcoin seized through criminal and civil forfeitures, has been touted as a bold move to position the United States as a leader in the cryptocurrency space. However, critics argue that the plan is fraught with risks and questionable motives.
One of the primary concerns is Bitcoin’s notorious volatility. Unlike traditional reserve assets such as gold or oil, Bitcoin’s value can fluctuate wildly, making it a precarious choice for a national reserve.
Economists warn that integrating such an unpredictable asset into government holdings could destabilise financial strategies rather than strengthen them.
Moreover, the initiative has raised eyebrows over its potential conflicts of interest. Critics point out that Trump’s administration has shown a growing affinity for cryptocurrency, with some officials previously holding stakes in digital assets.
This has led to accusations that the reserve could serve as a vehicle for personal or political gain rather than a genuine effort to bolster national economic security.
Supporters of the reserve argue that it represents a forward-thinking approach to embracing digital assets as ‘digital gold.’ They believe that retaining seized Bitcoin, rather than auctioning it off, could provide long-term financial benefits and signal the U.S.’s commitment to innovation in the crypto space.
However, even some crypto enthusiasts are skeptical, questioning whether the reserve’s creation is more about optics than substance.
In the end, the Strategic Bitcoin Reserve has ignited a broader conversation about the role of cryptocurrency in national policy. Whether it proves to be a visionary move, or a misguided gamble remains to be seen.
The United States has intensified its tariff policies, marking a significant shift in global trade dynamics
On 4th March 2025, President Donald Trump announced a sweeping increase in tariffs on steel and aluminum imports, raising them to 25% across the board. This move, aimed at bolstering domestic industries, has sparked widespread reactions both domestically and internationally.
The tariffs, which now include a broader range of products such as nuts, bolts, and soda cans, have drawn sharp criticism from key U.S. allies, including Canada, the United Kingdom, and Australia.
U.S and the EU
The European Union has responded with countermeasures, imposing tariffs on $28 billion worth of American goods, set to take effect on 1st April 2025. European Commission President Ursula von der Leyen expressed regret over the U.S. decision but emphasised the need to protect European consumers and businesses.
Domestically, the tariffs have been met with mixed reactions. While U.S. steel and aluminum producers have welcomed the measures, citing potential job creation and increased investment, downstream manufacturers that rely on these metals are bracing for higher costs.
Economists warn that the tariffs could lead to increased prices for consumers and potential disruptions in supply chains. Trump has indicated many times that the tariffs levelled at the U.S. are unfair and unequal.
The Trump administration has justified the tariffs as a means to encourage foreign companies to establish manufacturing facilities in the United States. However, critics argue that the policy could backfire, leading to retaliatory measures from trading partners and a potential slowdown in global economic growth.
As the global trade landscape continues to evolve, the long-term impact of these tariffs remains uncertain. Businesses and policymakers alike are closely monitoring the situation, weighing the potential benefits of protecting domestic industries against the risks of escalating trade tensions.
The coming weeks and months will be crucial in determining the effectiveness of this bold and possibly misguided economic strategy.
U.S. and Canada
The trade relationship between the U.S. and Canada has recently faced significant strain due to escalating tariff policies.
President Donald Trump announced a sharp increase in tariffs on Canadian steel and aluminum, raising them from 25% to 50%. This decision was reportedly in response to Ontario’s provincial government imposing higher electricity prices on U.S. customers.
However, after discussions between Ontario Premier Doug Ford and U.S. Commerce Secretary Howard Lutnick, Ontario agreed to pause the electricity surcharge.
As a result, the U.S. decided to maintain the original 25% tariff rate instead of doubling it. Despite this temporary resolution, tensions remain high, with Canada preparing to implement retaliatory tariffs on $30 billion worth of American goods.
These developments highlight the ongoing challenges in U.S. – Canada trade relations, with both nations navigating the complexities of economic and political interests.
U.S. and China
The U.S. – China trade tensions have escalated significantly in recent months. President Donald Trump recently imposed a 20% tariff on all imports from China, reportedly citing concerns over China’s role in the flow of fentanyl into the U.S.
This move has reignited the trade war that began during Trump’s first term.
In response, China has implemented retaliatory measures, including a 15% tariff on U.S. liquefied natural gas (LNG) and coal, as well as a 10% tariff on crude oil, agricultural machinery, and large-engine cars.
Additionally, China has restricted the export of rare earth minerals and metals, which are critical for U.S. tech and green energy industries.
Both nations have expressed a willingness to engage in dialogue, but the situation remains tense. The economic impact of these tariffs is being closely monitored, as they have the potential to disrupt global supply chains and affect industries worldwide.
U.S. and Mexico
The U.S. – Mexico trade conflict has intensified with the U.S. imposing a 25% tariff on Mexican imports, excluding oil and energy products, which face a 10% tariff.
This decision, aimed at addressing trade deficits and border concerns, prompted Mexico to announce retaliatory tariffs targeting $20 billion worth of U.S. goods. Critics argue these measures undermine the United States-Mexico-Canada Agreement (USMCA) and could disrupt supply chains.
Both nations are bracing for the economic impact, with businesses and consumers facing potential cost increases. This trade dispute highlights the challenges of balancing domestic priorities while maintaining strong international partnerships in a connected global economy.
And there’s more…
Russia and Ukraine peace deal according to Trump. Taking rare earth and other minerals from Ukraine in a ‘deal’. The potential reshaping of Gaza to become the riviera of the middle east. Talk of taking over Greenland. Making Canada the 51st state. etc. etc.
And this is just what we already know after 8 weeks of Trump in power!
The Elon Musk-led Department of Government Efficiency claims to be streamlining the federal government’s spending
But it has so far sown confusion, with the Trump administration attempting to rehire employees it had previously fired.
DOGE presents a distorted reflection of the current state of the U.S. economy. U.S. President Trump has implemented a series of policies to try to stimulate effect, frequently modifying them mid-course, resulting in collateral damage within the country’s own borders.
U.S. markets have been on a downward trend and were significantly impacted on. Tesla shares have lost some 50% since Trump’s election. Consumers are also boycotting Tesla vehicles.
Tariffs, according to Trump, are meant to protect U.S. businesses and punish trade partners. But so far, it seems that the world’s biggest economy is the one suffering.
Dismal day in the markets
U.S. stocks experienced a rout Monday 10th March 2025 as fears of a recession gripped investors. The S&P 500 dropped 2.7%, the Dow Jones Industrial Average lost 2.08% and the Nasdaq Composite sank 4% in its worst session since September 2022.
The White House downplayed the market slump, saying it’s not as ‘meaningful’ as business activity (what does that mean exactly)?
Asia markets also retreated Tuesday 11th March 2025. Japan’s Nikkei 225 fell around 1% amid a weaker-than-expected showing for its fourth-quarter gross domestic product (GDP).
Tesla’s sell-off on Wall Street intensified on Monday, with shares of the electric vehicle maker plunging a whopping 15%, marking their worst trading day on the market since September 2020
On Friday, Tesla wrapped up a seventh straight week of losses, its longest losing streak since debuting on the Nasdaq in 2010. The stock has fallen every week since CEO Elon Musk went to Washington, D.C., to take on a major role in the Trump ‘2’ White House.
Since peaking at $479.86 on 17th December 2024 Tesla shares have lost more than 50% of their value, wiping out upward of $800 billion in market cap. Monday 10th March 2025 marked the stock’s seventh worst day on record.
Tesla 3 month share chart as of close 10th March 2025 – down a total of 50% and 15% in one day
Tesla 3 month share chart as of close 10th March 2025 – down a total of 50% and 15% in one day
Tesla led a broader slump in U.S. equities, with the Nasdaq tumbling almost 4%, its steepest decline since 2022.
During an interview on Monday 10th March 2025, Musk was reportedly asked how he manages to run his businesses while fulfilling his role in the Trump White House. He reportedly said he’s doing so –‘with great difficulty’.
In addition to Tesla’s troubles, Musk’s social network X experienced several outages throughout the day on Monday 10th March 2025, and his company SpaceX is investigating two explosions in a row that occurred during test flights of its massive Starship rocket.
Elon Musk is also reported as saying that he expects to remain in the Trump administration for another year. He posted on X that ‘It will be fine long-term’, referencing Tesla’s steep stock price decline.
For seven consecutive weeks since Elon Musk travelled to Washington to join the Trump administration, shares in his automaker have declined, closing on Friday at $270.48.
This marks the longest losing streak for Tesla in its 15 years as a public company.
Tesla shares concluded the week a decline of over 10%, reaching their lowest level since 5th November 2024, U.S. Election Day, when they closed at $251.44.
Since their peak at $480 on 17th December 2024, Tesla has lost over $800 billion in market capitalisation.
China’s exports in the January 2025 to February 2025 period rose 2.3% in U.S. dollar terms from a year earlier, significantly undershooting expectations of a 5% increase
That marked the slowest growth since April 2024 last year when exports increased by just 1.5% on the year, according to recently released data.
Imports surprised markets by declining 8.4% year-on-year in the first two months of 2025, the sharpest fall since July 2023.
Trump’s first round of 10% tariff hikes on Chinese goods took effect on 4th February 2025, followed by another 10% tariff increase just one month later, taking the cumulative levies to 20%.
The cryptocurrency market faced a significant downturn following the announcement of President Donald Trump’s U.S. Bitcoin reserve plan
The initiative aimed to position the United States as a global digital asset leader fell short of market expectations, triggering a wave of selloffs.
Bitcoin, the flagship cryptocurrency, experienced a 3% drop, trading at $87,586.86 before dipping further to $84,688.13. Other major cryptocurrencies, including Ethereum, XRP, and Solana, also saw declines, with Cardano’s ADA token suffering a sharp 13% drop.
The market’s reaction underscores the gap between investor hopes and the plan’s immediate implications.
The executive order established a strategic bitcoin reserve funded exclusively by assets seized in criminal and civil proceedings. While this approach ensures no taxpayer burden, it disappointed investors who anticipated direct government purchases to bolster Bitcoin’s value.
White House Crypto and AI Czar David Sacks emphasised the reserve’s role as a ‘digital Fort Knox’, but the lack of immediate buy pressure dampened market sentiment.
The broader economic context also played a role. Weakness in equities and ongoing tariff concerns added to the uncertainty, compounding the market’s reaction.
Analysts noted that while the reserve plan is a step toward legitimising cryptocurrencies, its short-term impact on prices was underwhelming.
Despite the initial disappointment, the strategic reserve could have long-term benefits. By centralising and securing digital assets, the U.S. government aims to strengthen its position in the global financial system.
However, for now, the market remains volatile, reflecting the challenges of balancing innovation with investor expectations.
As the crypto landscape evolves, the success of such initiatives will depend on their ability to deliver tangible value to both the market and the broader economy.
Will the U.S. government create a strategic crypto reserve by directly buying the digital asset and holding it as a national reserve?
At this moment in time, only Trump has that ‘key’.
China has unveiled plans for 2025, announcing a 7.2% increase in defence spending alongside a GDP growth target of around 5%
These decisions, revealed during the annual National People’s Congress in Beijing, reflect the nation’s strategic priorities amid a challenging and fast changing global landscape.
The 7.2% rise in defence spending mirrors last year’s increase, underscoring China’s commitment to modernizing its military capabilities. With a defence budget of approximately 1.78 trillion yuan ($245.7 billion), China maintains the world’s second-largest military budget, though it remains significantly smaller than that of the United States.
The funds are expected to support advancements in high-tech military technologies, including stealth fighters, aircraft carriers, and nuclear capabilities. This move comes as China navigates heightened tensions with the U.S., territorial disputes in the South China Sea, and concerns over Taiwan.
On the economic front, the target of around 5% GDP growth signals a cautious yet determined approach to sustaining economic momentum.
This figure aligns with last year’s target and reflects the government’s focus on addressing domestic challenges, such as a sluggish property market and subdued consumer spending, while countering external pressures like trade tensions with the U.S.
Premier Li Qiang emphasized the importance of boosting domestic consumption and fostering innovation to achieve this goal.
China’s dual focus on defence and economic growth highlights its efforts to balance national security with economic stability.
However, the path forward is fraught with uncertainties, including geopolitical tensions and the need for structural economic reforms.
As the world watches, China’s ability to navigate these challenges will shape its trajectory in the years to come.
China says
‘Tariff war, a trade war or any other type of war’ – China says it’s ready to fight U.S. until the end.
