From tariffs to sanctions: U.S. steps up pressure on China, Europe faces crisis, and Bitcoin hit by record seizure

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From tariffs to sanctions

U.S.–China trade conflict

According to Bloomberg, U.S. President Donald Trump said he was considering halting trade in vegetable oil with China in response to Beijing’s refusal to purchase American soybeans. Trump called it an “economically hostile act” deliberately aimed at harming U.S. farmers.

Following his remarks, the S&P 500 turned negative, while shares of major agribusiness firms — Bunge Global and Archer-Daniels-Midland — surged, reversing earlier declines. Trump’s comments reignited fears of a renewed trade war despite recent diplomatic talks between Washington and Beijing.

IMF forecast

The International Monetary Fund expects global economic growth to slow from 3.3% in 2024 to 3.2% in 2025 and 3.1% in 2026. Advanced economies are projected to grow by around 1.5%, while emerging and developing markets will expand by just over 4%.

The report notes that inflation will continue to decline but remain above target levels in the United States. The IMF warns of rising protectionism, fiscal vulnerabilities, and potential corrections in financial markets. The Fund calls on governments to “restore trust through transparent and sustainable policies” and to accelerate structural reforms.

Political crisis in France

French President Emmanuel Macron announced that if the government of Prime Minister Sébastien Lecornu faces a no-confidence vote, he will dissolve parliament rather than appoint a new premier. The president considers such motions “proposals for dissolution” and urged political parties not to push the country toward a crisis, RFI reported.

On October 16, the French parliament is expected to debate two no-confidence motions — one from the far-right and another from the far-left. Only 25 votes from Socialist lawmakers are needed to bring down Lecornu’s cabinet, leaving the government’s fate and political stability in their hands.

$14 billion Bitcoin seizure

The U.S. Department of Justice and the U.K. government announced the largest cryptocurrency seizure in history, confiscating 127,271 BTC linked to a massive transnational fraud scheme. The main suspect is Chen Zhi, a British-Cambodian businessman and founder of the Prince Group.

According to investigators, the company operated a network of ten “scam compounds” in Cambodia, where thousands of people were forced to conduct online fraud operations. The illicit profits were laundered through luxury London real estate. The United States and the United Kingdom imposed sanctions on Prince Group and its affiliates, freezing assets and cutting access to the financial system, BBC reported.

The day in review

The events of October 14 confirm that the global economy is entering a new phase of volatility, where political decisions immediately affect capital flows and investor sentiment. Escalating trade threats and growing protectionism undermine long-term growth expectations, while geopolitical tensions remain the primary driver of market dynamics.

Global politics is shifting toward tougher measures and strategic autonomy, deepening the fragmentation of financial connections and threatening the stability of currency and commodity markets. Meanwhile, the growing prominence of cryptoassets — and the simultaneous tightening of control over them — reflects a broader trend: the global system is moving toward self-protection, even at the cost of efficiency and predictability.

Market reaction

Global indices posted moderate gains following dovish remarks by Federal Reserve Chair Jerome Powell and strong earnings from Wall Street banks. The MSCI Asia-Pacific index rose 1.3%, the Nikkei gained 1.5%, and futures on the S&P 500 and Nasdaq advanced up to 0.3%. Investor optimism remained tempered by ongoing trade tensions between the United States and China.

Gold reached a new all-time high of $4,186 per ounce, supported by expectations of imminent Fed rate cuts and renewed demand for safe-haven assets. Silver climbed to $52.17, while platinum and palladium each added less than 1%. Analysts attribute the rally to dovish monetary policy, persistent geopolitical stress, and global de-dollarization trends.

Oil prices extended their decline, with Brent falling to $62.2 and WTI to $58.5 per barrel. The drop followed an International Energy Agency warning of a potential supply glut by 2026 and signs of weakening demand. Escalating U.S.–China tensions further weighed on sentiment, raising fears of slower global growth.

The U.S. dollar weakened against the yen and Swiss franc after signals of potential rate cuts in October and December. The euro strengthened to $1.16, supported by France’s domestic political developments and expectations of looser U.S. monetary policy.

The digital asset market came under renewed pressure, with total capitalization shrinking by $150 billion in 24 hours. Bitcoin dropped to $111,500, while Ethereum fell below $4,000. Smaller altcoins experienced deeper losses as traders fled risk assets amid intensifying U.S.–China trade tensions.

As a reminder, the geopolitical events of October 13 set the tone for the markets: from the signing of a peace agreement in Gaza and the diplomatic activity of the United States to the political crisis in Madagascar and a major initial public offering in Japan. Investors’ attention is shifting toward risks and new drivers of growth—from energy to financial technology.

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