CNBC Daily Open: Markets rocked as Nvidia slumps and Trump confirms tariffs

U.S. President Donald Trump said Thursday he would give tariffs on Canada and Mexico, which are temporarily paused, the go-ahead, while separately threatening on Wednesday to slap a 25% levy on the European Union.

Those are some of the U.S.' closest allies and biggest trade partners. Expect geopolitical friction and economic fallout if the tariffs are implemented.

Some of the repercussions might have begun already. Jobless claims in the U.S. for the week ended Feb. 22 rose more than expected and were the highest since early October. Big Tech companies, such as Google, Meta and Microsoft, have announced layoffs this year — while such cost-cutting measures may not have been a direct response to tariffs, they are an early sign of what things could look like when companies try to deal with increased import prices.

Nvidia might also be staring down the barrel of a gun. Most of Nvidia's advanced artificial intelligence chips are manufactured by TSMC in Taiwan. Trump, on his campaign trial, has complained that the island stole the U.S.' chip business, and said he would impose tariffs on chips from Taiwan.

Shares of Nvidia plummeted Thursday after the chipmaker announced earnings Wednesday, wiping out billions in market capitalization. If tariffs on Taiwan are implemented as well, the picture will look much uglier, and not just for the chipmaker.

Nvidia loses $273 billion in value
Nvidia shares plunged 8.5% on Thursday, wiping out $273 billion in value and giving the company a market capitalization of $2.94 trillion. That makes Apple the only member of the $3 trillion club. So far in 2025, Nvidia shares have lost 10% of their value, as the company faces investor concerns about export controls, tariffs, more efficient artificial intelligence models and an overall slowing pace of growth.

Trump says tariffs will go ahead
U.S. President Donald Trump on Thursday said in a Truth Social post on Thursday morning that his proposed 25% tariffs on Mexico and Canada will go into effect March 4. He also said China will face an additional 10% tariff — on top of that the country already faces — on the same date. Reciprocal tariffs, which will apply to U.S.' global trade partners, will kick in April 2, Trump added. Meanwhile, Trump threatened to impose a 25% tariff on the European Union.

Markets slump over tariffs and Nvidia
U.S. markets were jolted on Thursday by tariff jitters and a plunge in Nvidia shares. The S&P 500 retreated 1.59%, the Dow Jones Industrial Average dropped 0.45% and the Nasdaq Composite fell 2.78%. On Friday, Asia-Pacific markets followed Wall Street's slide. Japan's Nikkei 225 lost around 2.9%, Hong Kong's Hang Seng Index was down roughly 3.2% and the Australia's S&P/ASX 200 closed 1.16% lower.

Higher-than-expected jobless claims
U.S. jobless claims for the week ended Feb. 22 totaled a seasonally adjusted 242,000, up 22,000 from the previous week's revised level and higher than the Dow Jones estimate for 225,000, according to a U.S. Labor Department report Thursday. Separately, Google told staffers this week in its "People Operations," the company's human relations division, and its cloud unit that it is planning layoffs, CNBC has learned.

Bitcoin's week-long rout
Bitcoin fell 3.45% to around $80,500 in early Asia trading, nearly 25% lower than the all-time high hit in mid-December after Trump's election victory. Prices have slipped as investors shun assets perceived to be risky given the weakness in global equity markets and uncertainty around Trump's tariffs. Investor sentiment was also soured by news that Bybit, a major cryptocurrency exchange, suffered a $1.5 billion hack.

[PRO] Gold might hit $3,000, analysts say
Central banks from around the world have been scooping up gold in recent years, lifting the precious metal to record levels. Now, with persistent geopolitical tensions, along with inflation and trade concerns, bullion could soon reach $3,000 for the first time, analysts think. There are a few ways for investors to gain exposure to gold, with each having their own fees and risks.

America's appetite for gold is 'sucking' bullion out of other countries

The threat of tariffs on gold has spurred U.S. banks, investors and traders to shift the gold into the Commodities Exchange Centre and other vaults in New York, when it would otherwise usually be stored in London. "There are concerns that imminent tariffs on Canada and Mexico will affect both gold and silver," said Nicky Shiels, head of metals strategy at MKS Pamp. 

Canada and Mexico are among the largest exporters of gold to the United States. Since Trump's election victory last November, U.S. gold futures have largely outpaced their international counterparts, creating arbitrage opportunities for those able to shift large quantities of bullion into the U.S., according to industry watchers CNBC spoke to.