Trump's tariff announcement causes sharp market declines

Markets fell sharply after Donald Trump announced a 25% tariff on imports from Canada and Mexico, set to begin in early March. This news raised concerns about a slowdown in the US economy and led to a significant drop in consumer confidence. Global stock markets, particularly technology shares, were affected, with US Treasury prices rising as investors sought safety. Bitcoin also fell below $90,000, reflecting broader market unease amid fears of overvaluation and economic instability. A recent survey indicated that two-thirds of traders believe the stock market is overvalued. The Federal Reserve has maintained its key borrowing rate, taking a cautious approach as it monitors the impact of trade tensions and potential spending cuts on the economy.