Tensions between the U.S. and China have reignited as China announced a steep 125% tariff on all American imports, effective April 12, 2025. The sharp increase in tariffs escalates the ongoing trade war and sends shockwaves across global markets, including heightened fears of a crypto crash.
This isn’t just a trade dispute anymore—it’s turning into an economic standoff with global consequences.
China Responds Aggressively with Tariff Spike
On Friday, China’s Ministry of Finance confirmed7 that all U.S. goods would now face a 125% import tariff, a significant jump from the previous 84%. Chinese officials framed this move as a direct response to what they call “economic bullying” by the Trump administration.
In a strongly worded statement, China vowed to ignore any future tariff hikes from the U.S. and warned of a “resolute counterattack” should tensions worsen. According to the Office of the Tariff Commission, the U.S. strategy of using tariffs as a weapon has become both “ineffective and laughable.”
Trump Mulls Delisting Chinese Stocks from U.S. Markets
In reaction to China’s tariff bombshell, former President Donald Trump is reportedly considering delisting Chinese companies from U.S. stock exchanges, as shared by The Kobeissi Letter on X (formerly Twitter).
Interestingly, the White House had earlier claimed that cumulative U.S. tariffs on Chinese goods had already reached 145%, suggesting this trade conflict was escalating even before China’s latest move.
Immediate Impact on Global and Crypto Markets
Markets responded swiftly and nervously:
- S&P 500 futures dropped, showing a lack of investor confidence.
- Hang Seng futures fell, reversing earlier gains.
- The U.S. dollar weakened, reflecting fears of economic instability.
Beyond financial markets, China has also begun reducing American cultural exports, limiting U.S. film imports, and issuing travel safety warnings for Chinese students in the U.S.
Crypto Market on the Edge
The crypto world isn’t immune to these developments. According to CoinMarketCap:
- Global crypto market cap stands at $2.61 trillion, up just 1.07% in the last 24 hours.
- Trading volume plunged 32.44%, now at $105.8 billion.
- Stablecoins make up 95% of the volume, signaling that traders are playing it safe.
- Bitcoin dominance has edged up slightly to 62.69%.
Experts caution that if tensions rise and another tariff wave hits, we may witness a sharp sell-off across major cryptocurrencies. Conversely, if a diplomatic path is taken, the crypto market could rebound strongly.
What Happens Next: Retaliation or Resolution?
At this point, the U.S. faces two clear options:
- Escalate with more tariffs, risking further global8 financial disruption and a potential crypto crash.
- Seek a diplomatic settlement, which could stabilize both traditional and digital markets.
The direction will largely depend on Trump’s next move and whether talks between the two global powers can resume in good faith.
Final Thoughts: Crypto Traders Should Brace for Volatility
The 125% Chinese tariff hike has added5 serious fuel to an already raging trade fire. With Trump considering additional countermeasures, global investors—and especially crypto traders—should prepare for heightened volatilityin the coming days.
Stay informed5, follow key announcements, and keep an eye on both macroeconomic policies and token performance. The outcome of this geopolitical standoff could shape the future trajectory of the crypto market.
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