BTC at 80k as Trump increases trade war
Donald Trump's vow to raise tariffs by 50% unless China complies has sparked market volatility and raised fears that his aggressive approach might cause deeper economic upheaval than taxes.
On the fourth day of rising tariffs, President Donald Trump threatened an extra 50% tax on Chinese imports if Beijing does not lift its retaliatory duties by April 9, 2025. The Truth Social statement escalated the U.S.–China trade war. Trump claimed China's 34% tariff increase—on top of years of “long-term trading abuses”—would prompt U.S. action unless reversed promptly.
Trump held tight amid market worries. “We’re not looking at a pause,” he added, rejecting tariff pauses for trade discussions. Instead, he said “many countries” want to talk and that any agreement must be “fair” or the U.S. would end trade. His tone reverted to his “America First” trade stance during his administration.
National Economic Council director Kevin Hassett claimed the administration has spoken to over 50 nations interested in trade accords, supporting Trump. The message was clear: the U.S. will collaborate on its terms.
China responded quickly. Washington Chinese embassy spokeswoman Liu Pengyu called the action “unilateralism, protectionism, and economic bullying.” Threatening China is a bad bargaining approach, he said, adding that Beijing would "firmly safeguard" its interests.
Market volatility followed. The S&P 500 index, which represents America's top corporations, fluctuated throughout the day before finishing down 0.2%. Apple fell 3.7% on investor fears about supply chain problems due to its heavy use of Chinese manufacturing. However, the tech-heavy Nasdaq Composite rose 0.1%, indicating mixed mood across sectors.
He also noted the breakdown of internal political consensus due to economic, opportunity, and education disparity. The U.S. is no longer perceived as a cooperative leader but as a unilateral actor imposing its will, reflecting these internal divisions.