Tensions between the US and China continue to escalate. The tariff war has now reached a new low, as rumors of a US backlash have become reality: The move involves a whopping 104% import tax on Chinese products. And, of course, this will also have repercussions on the crypto market.
Cryptocurrency on the decline again
A post on X, shared by journalist Walter Bloomberg, seems to confirm that these extremely high tariffs will indeed be implemented. As a result, we are seeing falling prices in the crypto sector again. While Bitcoin (BTC) was still cautiously positive this morning, the mood has now reversed. At the time of writing, the world’s largest cryptocurrency is down 1.1% within 24 hours. Ethereum (ETH) is under even greater pressure, falling 2.3%.
Cat and mouse game
Trump stated on social media on Tuesday that he is still waiting for a call from China. According to him, “China desperately wants a deal, but doesn’t know how to start.” So the door for negotiations is still ajar, but the atmosphere seems more tense than hopeful.
China appears unfazed by the threats and calls the increase in import tariffs “blackmail.” The government in Beijing has announced that it will “fight to the end.” Meanwhile, Chinese companies are preparing for a long economic conflict. Manufacturers of everyday products such as tableware and floor coverings are already warning of significant profit losses.
The European Union has also responded with counter-tariffs of 25% on US products. Brussels is pursuing a staggered, three-step approach to leave room for diplomatic solutions. Other countries are handling the situation differently: Vietnam, for example, asked for a 45-day reprieve, while Indonesia is offering tax breaks for US goods.
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