As U.S. Raises Tariffs on China, Gold Rallies and Tech Futures Drop

Gold Hits All-Time High, Tech Futures Sink as U.S. Escalates Trade War With China

A sharp escalation in U.S.–China trade tensions sent shockwaves through global markets on Wednesday, propelling gold to a new all-time high while hammering tech stocks and futures.

The U.S. announced tariffs of up to 245% on Chinese imports, sparking investor anxiety and a flight to safety. Gold soared over 2% to break past $3,300 an ounce, while Nasdaq futures slid more than 2% ahead of the open.

The tariff hike came in response to China’s curbs on strategic exports like rare earths, gallium, and germanium—materials essential for advanced chip production. The Biden administration also launched a national security investigation into critical mineral supply chains.

Currency markets reacted swiftly: the Dollar Index dropped below 100, the euro climbed to $1.13, and the yen strengthened to 142, as confidence in the greenback wavered.

Tech stocks took a direct hit. Nvidia plummeted 7% in pre-market trading after revealing that new U.S. export controls on AI chips to China would slash $5.5 billion from its expected revenue. The warning sparked fears of broader weakness in the semiconductor space.

Bitcoin, echoing the broader tech selloff, edged down to $83,000—continuing to trade more like a high-risk asset than a digital safe haven.