Global Markets Tank as Trump Introduces New Tariff Model

Global markets plummeted as United States President Donald Trump introduced far-reaching sets of retaliatory tariffs to balance trade deficits.

Global markets experienced a downturn on Thursday, triggered by U.S. President Donald Trump's announcement of broadly applicable sets of retaliatory tariffs to balance trade deficits.

The administration's new tariff policy, which includes a 10% levy on nearly all goods imported from China and other countries beginning next month, brought a sell-off in equities, commodities, and digital assets.

The new tariff model, which also features higher levies of 25% on foreign vehicles and 18% on certain food items, is set to redefine asset class investments, as market analyst Kevin Langford pointed out.

"We can expect some serious near-term volatility as the dust settles and market participants digest the implications of this unexpected move by the U.S. administration. Ultimately, the long-term effects will depend on how global economies and financial institutions react to these changes in American trade policy," he added.

The cryptocurrency market also experienced a sell-off on Thursday, with major assets losing ground as traders responded to the economic turmoil and the looming threat of a U.S. tariff on cryptocurrency transactions.

Bitcoin (BTC) and Ether (ETH) dropped moderately, with the hardest hit asset being Solana (SOL). The price of the smart contract token decreased by 11.62% over the last 24 hours,

Solana's sharp fall brought it down to $115.12, which represents a hefty 17.9% loss over the past week. While it plummeted, analysts are still cautiously optimistic about recovery.

Solana Faces Bearish Pressure, Analysts See Key Support

Crypto analyst Patel noted that Solana is presently resting in a strong Fibonacci 0.382 support area between $100 and $115. Traditionally, this level has served as a robust bounce point where investors tend to seek early accumulation opportunities.

If this support holds, analysts anticipate a possible reversal to open the door to a gradual recovery in the price of Solana. But if the price drops below this zone, according to Patel, the following significant support is in the $50–$72 zone, which coincides with the 0.618 Fibonacci retracement level.

This region was very important in the past, setting off a gigantic 2,100% advance in 2020–2021. Strategists who are seeking entry opportunities are paying attention to these levels.

One more major resistance level to keep an eye on is $186, which is used by analysts as a confirmation point of a breakout. Breaking above this price level can signal the beginning of a new upward momentum, with long-term goals reaching over $1,000 based on Fibonacci levels.

However, in the short term, sentiment in the markets will likely be influenced by larger macroeconomic trends, such as the ongoing trade events and the policies of the Federal Reserve.

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