Trump’s Tariff Pause Fails to Reassure Investors

U.S. President Donald Trump announced a temporary pause on tariffs for imports from Canada and Mexico, provided they meet the conditions of the United States-Mexico-Canada Agreement (USMCA). The reprieve, lasting until April 2, affects around 38% of Canadian imports and 50% of Mexican imports.

However, unlike Wednesday’s tariff relief for automakers, which lifted stocks, this move failed to calm investors. Instead, U.S. stock markets tumbled, with the Nasdaq Composite falling 2.61% and entering correction territory—a decline of 10% from its recent high.

Trump’s Trade Policies Shake Market Confidence

Despite the tariff pause, investors fear the Trump administration’s commitment to expanding tariffs. Trump dismissed market concerns, stating he is “not even looking at the market” and insisting that the U.S. will emerge stronger in the long run.

Meanwhile, U.S. Treasury Secretary Scott Bessent argued that “access to cheap goods is not the essence of the American dream” and justified tariffs as a way to:

1. Generate government revenue.
2. Protect industries and workers from unfair global competition.
3. Strengthen trade negotiations.

Bitcoin Drops as U.S. Creates Strategic Bitcoin Reserve

Trump signed an executive order creating a Strategic Bitcoin Reserve, to be funded exclusively with bitcoin seized in criminal and civil forfeiture cases. Additionally, the U.S. Treasury will manage a Digital Asset Stockpile to hold other confiscated cryptocurrencies.

Market reaction was negative, with Bitcoin prices dropping to $84,688.13, as investors were disappointed that the U.S. government was not purchasing Bitcoin but only stockpiling seized assets.

U.S. Layoffs Surge to Pandemic Levels

In a major economic red flag, U.S. employers announced 172,017 layoffs in February, marking a 245% increase from January and the highest level since July 2020. Over one-third of these job cuts stemmed from federal workforce reductions, driven by Elon Musk’s cost-cutting efforts with Trump’s approval.

Global Markets React to U.S. Instability

Stock markets around the world declined, reflecting growing uncertainty over U.S. economic policies:

• S&P 500 fell 1.78%, while Dow Jones lost 0.99%.
• Japan’s Nikkei 225 dropped 2.25%, as bond yields hit their highest since 2008.
• European markets declined, despite the European Central Bank cutting interest rates by 25 basis points.

Semiconductor Stocks Face Technical Warning

A major semiconductor ETF has fallen sharply in 2025, forming a dreaded technical pattern that signals potential further declines. After soaring 38.5% in 2024, the sector is now under heavy pressure, with concerns about slowing demand and trade disruptions.

Outlook: More Market Volatility Ahead

With Trump’s unpredictable tariff policies, rising layoffs, and global market uncertainty, investors remain cautious about the direction of the economy.

• Stock market volatility is expected to continue, especially in tech-heavy indexes like the Nasdaq.
• Bitcoin markets will watch for further regulatory actions after the Strategic Bitcoin Reserve announcement.
• U.S.-China trade tensions remain a key risk, with China warning against “arbitrary tariffs”.

As the April 2 tariff deadline approaches, markets will closely monitor the Trump administration’s next moves, as well as the Federal Reserve’s policy response to ongoing economic instability.