The iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX) closed up 2.15% at $45.07 on February 3, 2025, as market volatility surged following President Trump's announcement of new tariffs. The Cboe Volatility Index (VIX), a key measure of market volatility, spiked 23% to 20.26 in early trading, driven by fears of a potential trade war after Trump imposed 25% tariffs on imports from Mexico and Canada and 10% on Chinese goods. This move caught markets off guard, leading to a broad sell-off in equities and a rush to hedge against increased volatility. The tariffs, set to take effect on February 4, have raised concerns about a slowdown in global growth and resurgent inflation, prompting investors to reassess risks. Despite a temporary pause in tariffs on Mexico, the uncertainty surrounding trade policies has kept volatility elevated.