The United States imposes a 104% tariff on China, causing financial markets to plummet
On April 8, Trump announced an additional 50% tariff on goods imported from China, bringing the total tariff on Chinese imports to 104%. This news triggered a strong market reaction, with Bitcoin prices falling sharply.
According to data from Coinglass, over 135,170 traders faced liquidations totaling $398 million in the past 24 hours, reflecting heightened market risk aversion.
Market turmoil is not limited to the cryptocurrency sector, as global stock markets experienced severe fluctuations. Although European markets saw a slight rebound from a 14-month low on Tuesday, and Wall Street briefly rose on speculation that Trump might soften his stance, the new round of tariff threats quickly ended the market's breathing space, and financial markets continue to decline overall.
U.S. officials stated that Trump is awaiting a response from China, and the tariff policy will take effect after assessing news from the Chinese side. However, negotiations with China are not Trump's priority; although he hinted that an agreement with China is possible, the current focus is on negotiations with allies like Japan and South Korea.
China's Ministry of Commerce strongly opposed this, stating that the U.S. tariff policy is "adding error to error," and accused the U.S. of having a "coercive nature," vowing that if the U.S. continues, China will "fight to the end." This tough stance indicates that trade tensions between the U.S. and China may escalate further.
In response, analysts pointed out that this "maximum pressure" strategy, while creating short-term market panic, could exacerbate global supply chain disruptions and further increase inflationary pressures if the U.S.-China trade war substantively escalates. As of the time of writing, Bitcoin is approaching the $76,000 mark, with strong market panic.
Conclusion:
Despite Trump's suggestion of a possible agreement with China, it seems that the U.S. is currently more inclined to strengthen negotiations with allies. China's strong response regarding tariffs indicates that trade friction between the two sides may continue.
The cryptocurrency market is extremely sensitive to such macro policy changes, and investors need to closely monitor the progress of U.S.-China trade negotiations.
What do you think will happen to U.S.-China trade friction? Can cryptocurrencies remain stable amid this macro uncertainty?
