U.S. President Donald Trump has once again stirred the waters in global markets by announcing a twofold increase in tariffs on steel and aluminum - to 50% - and sharply accusing China of grossly violating the bilateral agreement on reducing trade barriers. According to Trump, Beijing is on the brink of a serious economic downturn - things are tough there, and this is what forced the Chinese side to enter into the deal that was concluded literally days ago. But, as the American leader claims, now China has simply thrown these agreements out the window - and such behavior, according to him, can no longer be tolerated.
According to Trump, China, with a light hand, ignored the terms of the deal reached in Geneva in mid-May - including the crucial provision for a 90-day tariff freeze. In his emotional post on the Truth Social platform on Friday evening, he stated that he made a lightning deal to pull China out of a very slippery economic situation. But now, as Trump himself put it, everything has gone off plan: Beijing not only violated the agreement but completely dumped it, not even trying to pretend to play fair.
"China, perhaps unsurprisingly to some, COMPLETELY VIOLATED OUR AGREEMENT. So being 'Mr. Nice Guy' is definitely not the way to go!"
At the same time, which specific points of the agreement China allegedly did not fulfill - the president did not specify. It was also not announced what steps he plans to take in response to the supposedly obvious violation of the agreement.
Trump doubles tariffs on steel
Speaking before workers at metallurgical enterprises in Pennsylvania, Trump stated in his characteristic manner that the tariff on steel imports would be raised to 50%. According to him, this measure is meant to protect the domestic industry and shield American producers from external pressure. At the same time, analysts do not rule out that such a move may backfire - causing a rise in prices for raw materials that are critically important for construction, the automotive industry, and generally for anything that requires metal.
The innovation, without unnecessary delays, will start on June 4, 2025. Experts warn: the step is sharp, and the consequences could be like a snowball - from rising production costs to new swings in global markets. It is highly likely that volatility and turbulence can be expected in the metallurgical sector - both domestically and abroad.
The crypto market is shaking: tariffs have crashed Bitcoin and altcoins.
Futures on American indices plunged immediately after the announcement of the tariff increase. Cryptocurrency was not left out: Bitcoin ($BTC ) fell to $104,684.72 - a minimum for the last seven days, following a historical peak of $111,970.17 just a week earlier. $ETH dropped to $2,553, $XRP retreated to $2.16, and Dogecoin fell by almost 10%, dropping to $0.1976.
According to analysts, more than $683 million in liquidations of trader positions were recorded within hours - the sell-off erupted instantly after the announcement of the results of U.S.-China negotiations on tariffs.
The main reason for the collapse is the halt in trade negotiations. As confirmed by U.S. Treasury Secretary Scott Bessent, dialogue with China has been suspended indefinitely. This caused a domino effect: investors switched to risk-off mode, and the market went into panic mode.
Cryptocurrency, as a high-risk asset, traditionally reacts sensitively to geopolitical swings. Especially against the backdrop of rumors about new sanctions, disruptions in logistics chains, and potential escalation of the trade war.
