Washington DC: A single social media post by US President Donald Trump triggered a severe crash in both cryptocurrencies and global stock markets, marking historic losses. Cryptocurrencies plunged to record lows, while the US stock market lost nearly $2 trillion in a single day.
Trump’s post, made at 10:57 am ET, announced that the US would impose a 100 percent tariff on all imports from China starting November 1, in addition to existing duties.
This came after China announced plans to restrict exports of rare earth metals, which it controls 70 percent of globally, from December. These materials are critical for various industries, including electronics, automobiles, and renewable energy, and Trump’s post indicated his anger over China’s decision.
"It is impossible to believe that China would have taken such an action, but they have, and the rest is History. Thank you for your attention to this matter!" – President Donald J. Trump pic.twitter.com/Kx6deI2voC
— The White House (@WhiteHouse) October 10, 2025
The US stock markets reacted sharply: the S&P 500 fell 2.71 percent, the Dow Jones dropped around 900 points (1.9 percent), and the Nasdaq plunged 820 points (3.56 percent). This represented the largest single-day decline since April, wiping out approximately $2 trillion in market value.
European and Asian stock markets also fell in response. Indian markets, however, were mostly unaffected since trading had already closed by the time of Trump’s announcement. Analysts are closely watching market performance when trading resumes on October 13.
Several factors contributed to the market turmoil:
- Escalation of the US-China trade war, affecting nearly all major economies and threatening global financial stability.
- The imposition of 100 percent tariffs on Chinese products, adding to the existing 40 percent tariffs, could further strain trade relations.
- China has not yet responded, but retaliatory tariffs on US goods are likely.
Trump had also mentioned a planned meeting with Chinese President Xi Jinping during the Asia-Pacific Economic Cooperation (APEC) summit in South Korea. While he indicated a visit to China, he suggested the meeting could be postponed, contributing to market uncertainty.
In addition to stocks, cryptocurrencies suffered historic losses due to the market shock. The total loss in one day was $19 billion (₹1.7 lakh crore). Bitcoin, which recently reached an all-time high of $125,000, fell to $102,000.
Other cryptocurrencies, including Ethereum, Litecoin, XRP, Solana, and various altcoins, lost 25–90 percent of their value in trading. Other global markets were also affected, including gold, crude oil, and bonds. International WTI crude oil prices fell nearly 5 percent to $58 per barrel, while Brent crude dropped to $62 per barrel.
The market reaction reflects the high level of uncertainty over China’s potential response and the strong US reliance on Chinese imports in sectors such as vehicles, electronics, metals, and solar energy. Analysts warn that escalating tariffs could negatively impact both US companies and consumers.
This event underscores how a single political announcement can ripple across global financial markets, affecting stocks, cryptocurrencies, commodities, and international trade simultaneously.
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