Mounting trade tensions between the U.S. and China triggered fresh market declines on Tuesday, with both equities and crypto assets sliding after the White House confirmed a dramatic increase in tariffs on Chinese imports.
Trump Administration Escalates Tariffs in Response to Chinese Retaliation
On April 8, the White House, via a statement broadcast on CNBC, revealed that the U.S. would raise tariffs on Chinese goods to 104%—a significant escalation from the previous 34% level.
The decision comes in response to Beijing’s refusal to backtrack on its own retaliatory tariffs. The increase includes a 50% additional tariff, with President Donald Trump signaling a firm stance in ongoing trade negotiations.
“Countries like China… are making a mistake,” stated White House Press Secretary Karoline Leavitt.
“President Trump has a spine of steel, and he will not break.”
Markets React Broadly to Rising Economic Uncertainty
The announcement sparked sharp declines across financial markets:
- Nasdaq fell over 2%
- S&P 500 and Dow Jones each dropped more than 1%
- Bitcoin (BTC) slipped 3.15%, extending its decline amid broader market weakness
Concerns are mounting that the intensified trade war could tip the U.S. economy into a recession and further strain global trade relationships.
“Sometimes you have to take medicine to fix something,” Trump told reporters aboard Air Force One. “I don’t want anything to go down—but this is necessary.”
Crypto’s Role in Economic Turmoil: Safe Haven or Risk Asset?
Despite the short-term downturn, some crypto leaders see long-term upside. Binance CEO Richard Teng suggested that the unfolding macroeconomic instability could strengthen interest in crypto as a store of value.
“Looking further ahead, this environment could also accelerate interest in crypto as a non-sovereign store of value,” Teng posted on X.
“Bitcoin and digital assets remain resilient in periods of policy and economic stress.”
As financial uncertainty grows, the crypto sector may once again position itself as a hedge against traditional market risk—even as short-term volatility persists.
