As the Sino-US trade war continues to escalate, China recently announced that it would impose a 34% tariff on US goods. This move quickly triggered a sharp reaction in the global market, especially the US stock market, which suffered the worst drop in recent years. At the same time, Bitcoin, as a digital asset, has shown its unique resilience and seems to have maintained a certain stability in the storm.
On April 3, 2025, U.S. President Donald Trump announced a 34% tariff increase on China, bringing the total U.S. tariff on Chinese goods to 54%. Trump called these tariffs "tough love" aimed at correcting long-standing trade imbalances. He accused China of "taking advantage" of the United States economically and believed that a tougher stance must be taken. The implementation of this tariff policy will take effect on April 10 and is expected to have a profound impact on the global supply chain.
In response, China announced that it would impose a 34% tariff on products imported from the United States. This measure is not only a direct counterattack against Trump's policies, but also shows China's tough stance in the trade war. However, the market originally hoped that there was still room for negotiation between the two sides. China's move clearly showed its "hard confrontation", which caused investors' confidence to collapse.
Trump has harshly criticized China's retaliation for his comprehensive tariff plan and vowed that his economic policies will never change. The US-China trade war is imminent, so economists warn that this may lead to market instability and trigger a wider economic crisis.
As China announced the additional tariffs, the U.S. stock market was hit hard in an instant. The Dow Jones Industrial Average plunged more than 2,200 points in just two days, marking the largest single-day drop since the COVID-19 pandemic. The S&P 500 and Nasdaq Composite also faced severe tests, falling 5.97% and 5.8% respectively. Analysts have warned that the market may have entered a bear market, which has undoubtedly exacerbated investors' panic.
Technology stocks were particularly hard hit, with shares of major companies such as Apple and Nvidia falling by more than 10%. These companies have deep roots in the Chinese market, making them the first victims of the tariff policy. As these tech giants fell, market confidence was further weakened, causing funds to quickly flow into safe-haven assets such as government bonds.
While global stock markets are collapsing, Bitcoin has shown relative resilience. Although the price of Bitcoin fell back to some extent in the short period after China announced the tariffs, falling between 1% and 2%, it soon stabilized at around $83,000. This performance is in stark contrast to the sharp fluctuations in traditional markets, showing the safe-haven nature of Bitcoin in the current economic environment.
Some analysts pointed out that this "decoupling" phenomenon of Bitcoin may stem from investors' re-evaluation of it as digital gold. As economic uncertainty increases, more and more investors begin to view Bitcoin as a safe-haven asset. This trend reflects, to a certain extent, the market's confidence in the future value of Bitcoin.
Despite the current market environment full of uncertainty, there are still some optimistic expectations for the future of Bitcoin. Many investors chose to increase their holdings of Bitcoin in the face of the stock market crash, showing their confidence in this digital asset. In addition, analysts expect that as the global economic situation evolves, new investment opportunities may emerge, further driving up the price of Bitcoin.
However, experts also warned that Bitcoin could face downward pressure if economic conditions continue to deteriorate, especially if the trade war escalates further. The current market sentiment is fragile, and any negative news could trigger a new wave of selling. Therefore, investors need to be cautious when participating in the Bitcoin market.
In conclusion, China’s retaliatory tariff measures against the United States have significantly impacted global financial markets, especially the collapse of the U.S. stock market. However, in such market turmoil, Bitcoin has shown relative stability and has become a safe haven for some investors. Although the future remains full of uncertainty, Bitcoin's resilience as an emerging asset may herald its new role in the financial market. For investors, how to find a balance between risks and opportunities will be an important issue in the future.
