U.S. Tariff Hike on China Sends Gold Higher, Tech Futures Plunging

Tariff Shock Sends Tech Tumbling, Gold Breaks Records Amid U.S.–China Standoff

Wall Street braced for turbulence Wednesday as the U.S. slapped sweeping new tariffs—up to 245%—on Chinese imports, triggering a rush into safe havens and sending tech futures into a tailspin.

Gold prices vaulted over 2%, smashing through $3,300 an ounce to hit a record high, as investors sought shelter from escalating geopolitical and economic friction. Meanwhile, the dollar stumbled, and futures pointed to sharp losses for tech-heavy indexes.

The White House’s aggressive tariff move comes on the heels of China’s export bans on crucial materials—gallium, germanium, and rare earth elements—critical for chip production. In parallel, an Executive Order launched a probe into the national security risks posed by U.S. reliance on foreign-sourced critical minerals.

Markets didn’t take long to react. The Dollar Index (DXY) slid under 100, and both the euro and yen gained ground. The euro strengthened to $1.13, while the yen rallied to 142 against the dollar.

Tech stocks led the selloff. Nasdaq futures sank over 2%, with chipmakers especially vulnerable. Nvidia (NVDA) tumbled 7% in pre-market trade after warning that fresh U.S. export curbs on AI chips to China could wipe out $5.5 billion in projected revenue. The news rattled broader expectations for the semiconductor sector, which remains deeply tied to Chinese demand.

Bitcoin wasn’t spared. The cryptocurrency slipped to $83,000, mirroring the downturn in tech stocks and reinforcing its reputation as a risk asset, not a safe-haven alternative like gold.