Crypto Prices Plummet as Trump Reaffirms 100% Tariffs on China
Crypto markets took a hit as President Trump confirmed 100% tariffs on Chinese goods. Despite acknowledging the tariffs are “unsustainable,” the move sent shockwaves through the financial world. Bitcoin and other digital currencies saw a 5% drop. The total crypto market value also fell by 5.75%, with top 20 cryptos suffered a 5% decline. The total crypto market cap also fell by 5.75%, while the top 20 crypto assets dropped about 5%. The market downturn coincided with U.S. President Donald Trump’s latest comments justifying the 100% tariff on Chinese imports. While admitting that the additional 100% levy was unsustainable, he blamed China. “It’s not sustainable, but that’s what the number is,” Trump said about the 100% tariffs on China. “They forced me to do that,” he said in a Friday interview. Earlier, Trump expressed mild optimism regarding trade talks with China.He also confirmed he woudl meet with Chinese President Xi Jinping in two weeks during a conference in South Korea.The escalation of the trade war, alongside further export controls on critical software, was a reaction to China’s expansion of export controls for rare earth minerals. These minerals are critical for U.S. industry, especially the tech sector. Simultaneously occurring, China relies on imports of advanced microchips from U.S. ally Taiwan. Trump’s tariff spooks crypto markets A 100% U.S. tariff on Chinese imports is a major disruptor of the global economy. Experts, including those at the Federal Reserve, expect notable negative impacts on economic growth, inflation, and employment. Because of this very reason, high-growth assets such as tech and crypto declined amid ongoing tensions. Simultaneously occurring, gold reached its highest levels yet, trading at $4,250 per ounce. rnrn
