Bitcoin Flat as China announces new 125% tariffs on US goods, gold spikes and oil

China’s Treasury Department has raised tariffs on some US imports to 125%, consistent with the latest US escalation and continued equality in trade disputes.

The tariff adjustments announced early on Friday come just two days after Beijing raised its duties to 84%, following Washington’s move to impose a higher import tax on Chinese products.

The decision came into effect immediately and accompanied by a sharply expressed statement from Chinese officials who organized the measure as a defensive response to what they labeled as a unilateral economic attack.

China’s Foreign Ministry described the US actions as “hegemony” and “bullying,” while the Commerce Department called the move “a mistake above the mistake.”

Around BBC NewsBeijing said it wouldn’t escalate any further, but warned against continued US tariff pressure and explained the latest hike in opposition to international economic norms.

Beijing’s Ministry of Commerce has concluded US tariffs on the BBC

“Numbers games that are practically meaningless in economics (…) that’s a joke.”

Cross-asset responses reflect a diverse narrative of risk

Market responses reflect uncertainty about how deeply the tariff escalation will affect global trade and capital flows. Traditional safe haven assets received a modest inflow, while risk assets moved unevenly.

As the wider risk assets were sold, Bitcoin, which had been immersed in about 0.60% before the announcement, was recovered briefly after 9am, but ultimately remained flat at $81,292.68 at press time.

The mixed response highlights the ongoing debate about the role of Bitcoin as a macrohedge. Some investors treat it as a valuable repository during geopolitical tensions, while others see it as a high beta asset that is sensitive to broader market sentiment. Indecision reflects behavior seen during previous trade disputes. There, the usefulness of Crypto as a safe home asset remains context-dependent.

In contrast, gold rose steadily, increasing by 0.35% in sessions. The upward momentum of the metal continued past the announcement, consistent with previous episodes of trade friction. Gold’s price action suggests a turnover of capital from stocks to hard assets that are not vulnerable to disruptions in trade volumes.

The US Treasury Department also attracted demand. The 10-year bond prices rose 0.12%, lower drive profits, reflecting investors’ attention. In many cases, a decline in yield suggests expectations for slower economic growth or future reductions in the Federal Reserve.

The increased demand is consistent with broader risk-off sentiment, particularly in anticipation of further policy tightening or retaliatory economic measures. Still, that contrasts with the recent decline in bond prices along with stocks. The move, although modest, shows a renewal of U.S. Treasury bonds as a flight to safety after the sale earlier this week.

The oil decreases rapidly and is formerly static

Oil has posted the most notable negative side moves across assets. Prices fell 1.02% as trade disputes were re-adjusted demand expectations under the assumption that trade disputes with extended trade disputes could constrain global industrial activities. The move reflects sensitivity to macroeconomic indicators that suggest trade barriers can reduce energy consumption, especially in areas with high manufacturing.

Meanwhile, Chinese bonds were largely unchanged. Proxy 10-year Chinese government bonds recorded a slight increase of just 0.01%, suggesting that fully priced markets or banks of China could intervene to ensure currency stability. Such muted movements mean that investors expect limited short-term volatility in the forex market despite tariff escalation.

The S&P 500 (Spy Proxy) slipped 0.63% in pre-market trading, reflecting careful sentiment and the ongoing movement of wholesale from stocks.

A broader trade landscape

The increase in tariffs follows a pattern of mutual movements that began with the Trump administration’s fundamental import tax policy. Since the start of the trade conflict, Beijing has coincided with a tariff hike that is roughly equivalent to Washington’s escalation. The cumulative increase has led to obligations on both sides to historically increased levels, with a 125% tariff now being the baseline for many products.

Taiwan’s President Lai Qingte separately stated that Taiwan is engaged in early negotiations with Washington after reducing US tariffs on island exports from 32% to a 10% baseline. Around BBC NewsLai said his government remains committed to ensuring favorable results to protect the industry’s interests.

It remains uncertain whether the tariff ceiling will retain or cause new retaliation. For now, investors appear to be divided into interpretations of rising tariff signals, either a point of trade relations or a entrenchment of economic separation between the two biggest economies of the world.

While products such as gold and bonds continue to absorb geopolitical risks in traditional ways, Bitcoin’s identity spans both sides of the spectrum. The lack of clear directional beliefs may reflect the broader hesitation to assign fixed roles to the macroeconomic crisis, at least until clearer signals emerge from central banks or geopolitical actors.

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