On 27 February 2025, President Trump announced a new 10% tariff on China, adding to the existing 10%, totalling 20%. The White House confirmed that tariffs on Canada and Mexico remain in place, impacting market sentiments.

US initial jobless claims were reported at 242,000 compared to an estimate of 221,000. Meanwhile, January durable goods orders rose by 3.1%, surpassing the expected 2%, and Q4 GDP growth was steady at 2.3%.

Market reactions were negative, with the S&P 500 down 1.6% and Nasdaq falling 2.8%. The Australian dollar weakened significantly, while gold decreased by $44 to $2,872.

The fresh tariff announcement compounds existing trade pressures, raising the total levy on Chinese goods to 20%. This move reinforces concerns about higher costs for businesses relying on imports while increasing the likelihood of retaliatory measures from Beijing. The White House’s confirmation that tariffs on Canada and Mexico remain unchanged has also contributed to ongoing uncertainty, as companies continue to navigate these trade conditions.

Unemployment claims were notably higher than expected, coming in at 242,000 instead of the projected 221,000. This suggests that businesses may be adjusting their workforce plans in response to economic pressures. However, the 3.1% increase in durable goods orders—easily outpacing the forecasted 2% rise—shows that demand for long-term investments remains intact. Alongside that, the economy expanded at a steady 2.3% in the final quarter of 2024, aligning with expectations and indicating no sudden shift in underlying growth momentum.

Markets responded with a clear downward move, shaking investor confidence. The S&P 500 saw a 1.6% loss, while the Nasdaq dropped by 2.8%, with technology stocks under more pressure than broad-market equities. Meanwhile, the Australian dollar fell sharply, likely reflecting a combination of trade uncertainties and shifting risk sentiment. Gold, often seen as a safe-haven asset, slipped by $44 to $2,872, suggesting that investors were unwinding some defensive positions or reallocating capital elsewhere.

In the coming weeks, attention will be on potential policy responses and whether Beijing introduces countermeasures that could add further volatility. At the same time, economic data releases will help provide more clarity on whether the weak jobs figure is a one-off or the beginning of a broader trend. Market participants should watch how these factors influence price movements across key sectors.