Amid an unprecedented move, Trump has raised interests in the ongoing trade war and threatened to raise China’s tariffs to 104% while the crypto market remains.
After China’s retaliation for the latest advancement of US tariffs, US President Donald Trump is threatening further action. On April 7, Trump announced on social media platform Truth Social that China will face an additional 50% tariff if it does not remove measures.
In particular, China has introduced a 34% retaliatory tariff on all US goods, reflecting the same measures by the US. Now, by April 8, Trump has given China an ultimatum to remove retaliatory tariffs or face new measures.
“If China does not raise its long-term trading abuse by 34% by tomorrow, April 8, 2025, the US will impose additional tariffs on China on April 9th.” Donald Trump
Taxes on China’s imports into the US combined 54%, taking into account existing tariffs and Trump’s new measures. If new tariffs are in effect, Chinese goods will face 104% tariffs. For certain products such as cars and electronic devices, tariff rates are even higher.
The trade war escalates along with Trump’s latest threat to China
Since the announcement of the “liberation date” on April 2nd, the average US tariffs on foreign goods have increased to 18.8%. This was the highest level since the Smootholy Act of 1930, and raised great concerns in both the stock and crypto markets.
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Crypto Markets lost $1 trillion worth of value since February as risk-off sentiments dominated the market. In other words, traders fear increased inflation, reduced growth and employment due to the economic impact of tariffs.
Still, it is not clear how long these tariffs will last or what the long-term fees will be. In particular, 59% of Polymarket traders expect Trump to cut down most of the tariffs by July. Just a day ago, on April 6th, these odds were just 33%.
After the news, Bitcoin (b) was spiked at a high of $81.119 every day, then went to $78,321.
Probability of Trump reducing most tariffs by July | Source: Polymarket
Some traders hope that Trump’s tariffs are a negotiation tool rather than a long-term measure. This scenario is more likely if Trump suggested a 90-day hiatus on all tariffs except China as trade negotiations are underway.
read more: Trump’s tariffs threaten US Bitcoin mining as China hits with a 34% export obligation
