US-China Tariff War / Trump's New Tariffs on China Rock Global Crypto Market, $20 Billion Lost in a Day

In a significant move, US President Donald Trump has once again unleashed a tariff bombshell, this time targeting China, while he announced an additional 100% tariff on goods imported from China, triggering immediate volatility in the global cryptocurrency market. This declaration resulted in investors losing over $20 billion (approximately 1. 7 lakh crore Indian rupees) in a single day. The new tariffs are set to take effect from November 1, 2025, adding to the existing duties. Trump made the announcement on his social media platform, 'Truth Social,' stating that the US will impose an additional 100% tariff on China, on top of existing tariffs, starting November 1, 2025, while concurrently, export controls on all critical software will also be implemented from the same date.

Trump justified this move as a response to China's plans for comprehensive export controls, which he labeled a "dangerous precedent" for international trade, while currently, US tariffs on Chinese products stand at 30%, which will increase to a total of 130% with the new announcement. The direct consequence of Trump's announcement was a sharp downturn in the crypto market. Major cryptocurrencies such as Bitcoin and Ethereum experienced rapid declines. Bitcoin plummeted over 10% to fall below $110,000 before recovering slightly to $113,096. Ethereum saw an 11. 2% drop, landing at $3,878. Other cryptocurrencies like BNB, Solana, and XRP also registered declines ranging from 14% to 18%, creating widespread concern among investors.

Why Crypto Prices Declined

The primary reason for the fall in cryptocurrency prices is the escalating trade tensions between the US and China and its potential impact on crypto mining and technology. China's stated intention to halt rare earth exports in the future prompted Trump's retaliatory tariffs, while investors fear that this trade war will adversely affect crypto mining operations and related technological infrastructure, leading to increased selling pressure in the market.