The ongoing trade war between China and the USA escalates with a fresh wave of retaliatory tariffs. Meanwhile, the cryptocurrency market is shaken by this escalation, causing Bitcoin to plummet below $77,000.
China wasted no time in responding to the recent increase in American tariffs on Chinese exports. The Chinese government announced an 84% increase in tariffs on all imports from the United States. This decision will take effect on April 10, 2025.
This retaliation follows Washington’s decision to raise its own tariffs on Chinese products, raising them from 34% to 84%. The Chinese State Council’s Customs Tariff Commission referred to these American measures as “unilateralism” and “economic harassment”. They accused the United States of violating international trade rules and jeopardizing global economic stability.
In response, China cited national legal framework and principles of international law to justify its retaliatory decision. The Chinese government urged the United States to revoke these “erroneous practices” and return to the negotiating table.
This new escalation in the Sino-American trade war had an immediate impact on global financial markets. Bitcoin (BTC) is often seen as a safe haven amidst geopolitical turmoil. However, it briefly dropped below the $77,000 mark.
Beyond trade tensions, this new escalation of hostilities between China and the United States will have far-reaching implications on the global economy. The increase of tariffs to nearly prohibitive levels risks causing a sharp decline in trade volumes and disrupting numerous supply chains.
Furthermore, this confrontation highlights fragilities in the current international economic system. Dominated by the two largest global powers, the market volatility, exemplified by Bitcoin’s drop, demonstrates how cryptocurrencies remain sensitive to geopolitical uncertainties despite claiming to be safe havens.
Beyond economic considerations, this escalation also raises profound questions about global governance and the ability of international bodies to regulate trade conflicts. By engaging in tariff wars, China and the United States seem to disregard the multilateral cooperation efforts of recent years.
Gaston has been a writer for over 7 years and a passionate cryptocurrency enthusiast since 2020. He loves exploring the crypto ecosystem and is now dedicated to sharing his insights and discoveries through InvestX.
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