US-China Trade Heat Rises: Yellen Sounds the Alarm, Tariff Hikes Incoming
Sources: U.S. Treasury, MOFCOM, Reuters
🔍 Highlights:
Yellen Flags Concerns After China Visit
U.S. Treasury Secretary Janet Yellen returned from high-level talks in China with little progress to show. She called out China’s “unfair practices” toward American companies and hinted at possible new trade restrictions—especially if China keeps backing its green tech sector (EVs, solar, batteries) with heavy subsidies.
U.S. Tariffs Under Review
The Biden administration is reassessing Section 301 tariffs on over $300B worth of Chinese imports. Expect major increases—especially for electric vehicles, where tariffs could jump from 25% to a whopping 100%. Battery components and critical minerals are also in the crosshairs. Final decisions expected in early 2024.
China Pushes Back
In response, Beijing has accused the U.S. of “weaponizing trade policies” and warns of firm countermeasures. Potential retaliation? U.S. agriculture and Boeing could be on the chopping block.
Tech Restrictions Tighten
On October 24th, the U.S. imposed fresh export curbs on AI chips (like those from Nvidia and AMD), ramping up the tech war. China condemned the move as “economic coercion,” raising fears of further supply chain disruptions.
📈 Market Impact:
Crypto Market Volatility
Heightened U.S.-China tensions may spike volatility in BTC and ETH. In past conflicts, investors have briefly dumped risk assets—including crypto—before stabilizing.
Supply Chain Shocks
Tariffs and export bans could disrupt key components for mining and semiconductor production—potentially impacting projects reliant on GPUs and hardware imports.
Yuan Pressure & Crypto Demand
Ongoing pressure on the Chinese yuan (USD/CNY) could drive local investors toward crypto as a capital flight hedge. Keep an eye on USDT premiums in Asian markets.
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