US Stocks Tumble on Trump Tariffs; Tesla Slides on Dogecoin
US stocks tumbled as President Trump escalated tariff threats, weighing on both equity and crypto markets. On July 7, Trump announced potential 10% tariff hikes on BRICS nations and extended trade-deal deadlines to August 1, driving the Dow down over 1%, the S&P 500 off 0.84% and the Nasdaq down 0.9%. Treasury Secretary Scott Bessent signaled imminent trade agreements, but renewed Trump tariffs—threatening 25% levies on Japan and South Korea and extra 10% duties on “anti-American” retaliation—rekindled volatility. In a parallel move, Tesla shares plunged 7.2% after Elon Musk launched the “America Party” and following a new budget bill that removed EV tax credits and cut funding for his Dogecoin department. Crypto traders should watch for spillover: heightened Trump tariffs risk a market-wide sell-off, while reduced Dogecoin support may pressure DOGE in the short term.
Bearish
Trump’s expanded tariff threats have triggered a risk-off environment, leading to sharp drops in US equities and heightening market uncertainty. Equity sell-offs often spill into crypto markets, exerting downward pressure. Additionally, the new budget bill’s removal of EV tax credits and cuts to Tesla’s Dogecoin funding undermine institutional support for DOGE, further dampening sentiment. While upcoming trade agreements could later restore confidence, the immediate outlook for cryptocurrencies, particularly Dogecoin, is bearish.