Trump justifies China tariffs as crypto market crashes
Crypto markets crashed as Trump reaffirmed 100% tariffs on China, despite admitting they are “unsustainable.”
- Crypto markets fell more than 5% amid ongoing trade tensions between the U.S. and China
- Donald Trump justified 100% tariffs on China, despite admitting the figure is unsustainable
New U.S. tariffs on China sparked renewed global risk aversion, hitting crypto assets hard. On Friday, Oct. 17, Bitcoin fell 5%, adding to a 13% weekly loss. At the same time, the total crypto market cap fell 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 would 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. At the same time, 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 significant negative impacts on economic growth, inflation, and employment.
For this reason, high-growth assets such as tech and crypto declined amid ongoing tensions. Meanwhile, gold reached its highest levels yet, trading at $4,250 per ounce.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
As economic cracks deepen, bitcoin may become the next liquidity "release valve"
The US economy is showing a divided state, with financial markets booming while the real economy is declining. The manufacturing PMI continues to contract, yet the stock market is rising due to concentrated profits in technology and financial companies, resulting in balance sheet inflation. Monetary policy struggles to benefit the real economy, and fiscal policy faces difficulties. The market structure leads to low capital efficiency, widening the gap between rich and poor and increasing social discontent. Cryptocurrency is seen as a relief valve, offering open financial opportunities. The economic cycle oscillates between policy adjustments and market reactions, lacking substantial recovery. Summary generated by Mars AI. The accuracy and completeness of this summary are still being iteratively updated by the Mars AI model.
The wave of cryptocurrency liquidations continues! US Bitcoin ETF sees second highest single-day outflow in history
Due to the reassessment of Federal Reserve rate cut expectations and the fading rebound of the U.S. stock market, the crypto market continues to experience liquidations, with significant ETF capital outflows and options traders increasing bets on volatility. Institutions warn that technical support for bitcoin above $90,000 is weak.
When traditional financial markets fail, will the crypto industry become a "pressure relief valve" for liquidity?
As long as the system continues to recycle debt into asset bubbles, we will not see a true recovery—only a slow stagnation masked by rising nominal figures.
A Quiet End to 2025 Could Prime Crypto for a 2026 Breakout, Analysts Say
Trending news
MoreCrypto prices
More
