- The U.S. imposes 245% tariffs on Chinese goods, escalating trade tensions and global uncertainty
- Crypto markets lose $200 billion in capitalization amid fears of stricter financial regulations
- Steel and aluminum tariffs reinstated at 25%, signaling protectionist policies for domestic industries
The Chinese government now faces even greater tariffs from the U.S. as trade tensions continue to escalate between the two countries.
On the most recent fact sheets published by the White House, the United States announced a massive 245% tax on Chinese products. The move was done in response to Chinese retaliatory measures, including Beijing’s decision to halt deliveries of Boeing jets and bar local businesses from investing in the U.S.
The White House also confirmed that over 75 nations have reached out to Donald Trump in order to discuss new trade deals. For now, nearly all nations are burdened with fixed 10% tariffs on imports, while also imposing reciprocal tariffs on specific countries.
In addition, President Trump signed proclamations aimed at closing existing loopholes and exemptions in tariff policies. These measures reinstated a full 25% tariff on steel imports and elevated the tariff on aluminum to 25%, reinforcing the administration’s commitment to protecting domestic industries from unfair trade practices and global overcapacity.
Crypto Market Reacts Negatively to Tariff Escalation
As expected, the digital assets market did not respond positively to the news. Over the last hour since the fact sheet was published, Bitcoin saw a decrease of 0.59%, while Ethereum and XRP saw losses of nearly 1% in that same period.
The entire cryptocurrency market capitalization erased $200 billion from its total value, reflecting heightened investor uncertainty.
The tariff war between China and the U.S. has been the biggest preponderant factor in the market’s bearish downturn of the last two months. Currently, investors are still wary of any rebounds, with the ‘Fear & Greed Index’ still hitting major ’Fear’ levels. With that, many of them may be considering options on how to trade on a bear market while remaining cautious of further volatility.
