Dow futures experienced a decline on Monday following President Trump’s announcement of additional tariffs over the weekend, targeting significant trading partners, namely the European Union and Mexico. Bitcoin reached unprecedented levels at the onset of “Crypto Week”, while crude prices experienced a modest increase and China announced an expanding trade surplus.

Global trade has once again captured attention following the announcement by U.S. President Donald Trump over the weekend regarding the introduction of 30% tariffs on imports from Mexico and the European Union. This came in the wake of recent announcements regarding comparable tariffs imposed on Japan, South Korea, Canada, and Brazil, alongside a 50% duty on all copper imports. Trump’s tariffs will take effect on August 1, providing the targeted countries with fewer than three weeks to negotiate a trade agreement with Washington, following a deadline extension from July 9. Recent data indicated that U.S. customs duty collections reached a record-high of $113.3 billion gross during the first nine months of fiscal 2025, with the government’s fiscal year concluding on September 30.

The primary indices on Wall Street experienced a decline last week, retreating from their record highs, as the S&P 500, the Nasdaq Composite, and the Dow Jones Industrial Average all ended their three-week streaks of gains. Sentiment has been notably affected by Trump’s announcement over the weekend regarding plans to impose 30% tariffs on imports from Mexico and the European Union, thereby increasing the likelihood of a global trade war. Investors will also be focusing on the new quarterly earnings season, which is set to ramp up this week, starting in earnest on Tuesday with numbers from a number of senior banks, including JPMorgan Chase, Wells Fargo, and Citigroup.

In June, China’s trade surplus expanded beyond expectations, bolstered by robust export growth following the trade agreement between Beijing and Washington, which resulted in a reduction of trade tariffs by both nations. The trade surplus increased to $114.77 billion last month, according to customs data released on Monday, surpassing the anticipated $113.20 billion and exceeding the $103.22 billion recorded in May. In June, China’s exports experienced a year-on-year increase of 5.8% in dollar terms, surpassing the anticipated growth of 5% and exceeding the 4.8% rise recorded in the previous month. Customs data indicated that China’s rare earth exports increased in June compared to the previous month, attributed to advancements in trade negotiations with the U.S., which led to China granting additional export licenses to domestic producers. Earlier this month, Washington eased certain export restrictions on chip technology directed at Beijing. Domestic demand in China remains relatively subdued, as evidenced by imports which increased by only 1.1% year-on-year in June, falling short of the anticipated 1.3% growth. However, this marks an improvement from the 3.4% decline observed in the previous month. Monday’s data positions the nation for an encouraging gross domestic product reading for the second quarter on Tuesday, with projections indicating growth exceeding Beijing’s 5% annual target.

Bitcoin, the world’s largest cryptocurrency, reached a new record high on Monday, surpassing the $120,000 mark for the first time as investors anticipated long-awaited policy victories for the industry this week. Bitcoin experienced an increase of 3.7%, reaching a value of $122,020, after peaking at $122,530 earlier in the session. Bitcoin has experienced significant gains over the past week, driven by robust ETF inflows and rising optimism regarding the potential for more favorable regulatory conditions for cryptocurrencies in the United States. Investor sentiment has been driven by anticipations surrounding the upcoming debates in the U.S. House of Representatives on several significant cryptocurrency bills this week, notably the Genius Act, Clarity Act, and the Anti?CBDC Surveillance State Act. If enacted during what is referred to as “Crypto Week,” these measures may lay the groundwork for extensive regulatory frameworks overseeing stablecoins, the custody of crypto assets, and the wider digital financial landscape. These bills have garnered the endorsement of Trump, who has labeled himself the “crypto president” and has advocated for policymakers to reform regulations to benefit the industry. The increase in bitcoin, which has risen by 30% year-to-date, has led to a significant expansion in the sector’s overall market capitalization, now estimated at approximately $3.78 trillion, as reported by CoinMarketCap.

Oil prices experienced a slight increase on Monday as market participants anticipate developments regarding potential further U.S. sanctions on Russia, which could impact global production levels. Brent futures increased by 0.1% to $70.40 per barrel, while U.S. West Texas Intermediate crude futures also rose by 0.1% to $68.54 per barrel. Trump is set to deliver a “major statement” regarding Russia on Monday, having voiced his dissatisfaction with Russian President Vladimir Putin over the insufficient advancements in resolving the conflict in Ukraine. A bipartisan bill in the United States Congress aimed at imposing sanctions on Russia gained traction last week; however, it still requires the endorsement of Trump. European Union envoys appear to be nearing consensus on an additional sanctions package targeting Russia, which is expected to incorporate a reduced price cap on the nation’s oil exports.