The ongoing trade escalation between the United States and China has reached a new high in recent developments. The historic impact has shaken the cryptocurrency world to an all-time low — even the world’s largest cryptos couldn’t withstand the sudden shock and plunged to alarming levels. Well, we are addressing Trump‘s recent order to charge a 100 percent tariff on all Chinese imports, which also incorporates any critical software imports that the East Asian country has been exporting to the United States.
This fight for Trade between the two largest economies has been going on for some time now, and for the longest time, no amount of resolution would have been enough to cool it off from the boiling point. The new tariffs will take effect November 1, following China’s move to curb critical mineral exports to the United States. As buzz continues over this heightened state of trade affairs between Beijing and Washington D.C., the decision is highly potent in bringing across a massive blow on the country’s tech industry, as well as cloud computing and artificial intelligence.
However, the unexpected fallout from this escalating trade war has been felt most in the global cryptocurrency market. It is safe to say that this domain has completely crashed down, and nearly all the strongest currencies have fallen to an unbelievable level. At 6:10 AM, right after the announcement was made from the U.S. side, Bitcoin went down 7.60 percent to $1,12,592.31, whereas Ethereum met with a 12.24 percent drop, only to land on $3845.92; based on a report by CoinMarketCap.
Meanwhile, the report further mentioned that the world’s largest cryptocurrency saw a record-breaking $9.5 billion in liquidations amid a failed support at the $1,20,000 level already. Other currencies that recorded a significant drop included Tether ( 0.28% to $178.97 billion market cap), Binance coin (12.91% to $152.27 billion market cap), and XRP (16.31% to $140.19 billion market cap).
With such a major tremor felt on the economy and possibly a more tightened situation paving the way ahead, Donald Trump’s latest Truth Social post on the matter offers little or absolutely no consolation to those hit by the blow. He started by expressing his unhappiness with China’s stance on the export of rare earth minerals, tagging it as an ‘extraordinarily aggressive position’.
His note read as “It has just been learned that China has taken an extraordinarily aggressive position on Trade in sending an extremely hostile letter to the World, stating that they were going to, effective November 1st, 2025, impose large-scale Export Controls on virtually every product they make, and some not even made by them. This affects ALL Countries, without exception, and was obviously a plan devised by them years ago. It is absolutely unheard of in International Trade, and a moral disgrace in dealing with other Nations.”
Trump also issued a warning to China in the same post, suggesting that the country should prepare for consequences after taking such an ‘unimaginable’ step.
He penned “Based on the fact that China has taken this unprecedented position, and speaking only for the U.S.A., and not other Nations who were similarly threatened, starting November 1st, 2025 (or sooner, depending on any further actions or changes taken by China), the United States of America will impose a Tariff of 100% on China, over and above any Tariff that they are currently paying. Also, on November 1st, we will impose Export Controls on any and all critical software. It is impossible to believe that China would have taken such an action, but they have, and the rest is History.”
