US President Donald Trump announced bilateral tariffs with 185 countries, including China, on April 2.
Trump decided to add another 34% tax on top of the tax imposed on China, raising the overall tax on Chinese goods to 54%.
China also retaliated against Trump’s move by imposing a 34% tariff on all US goods, in addition to existing duties.
“With the approval of the State Council, additional tariffs will be imposed on imported goods of US origin from 12:01 on April 10, 2025. The relevant points are as follows:
- All imported goods originating in the United States will be subject to an additional 34% tariff rate over the current applicable tariff rate.
- The current bond, tax reduction and exemption policies will remain the same, and no reduction or exemption will be applied to additional tariffs.
This led to a worsening of risk perception, and Bitcoin (BTC) fell to $82,500 levels.
Bitcoin’s decline was accompanied by other altcoins such as XRP, Ethereum (ETH), Solana (SOL), and Dogecoin (DOGE), which also reversed their gains and fell significantly during the day.
ForexLive analyst Justin Low said: “China’s response is not only negative for the US, it also impacts the global outlook and risk assets.”
*This is not investment advice.