China Cranks Tariffs to 84% Amid US-China Trade War Escalation, BTC Price Slides

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China has significantly ramped up its response in the ongoing trade war with the United States by announcing a major tariff increase on U.S. goods. The move comes as part of a broader strategy to counter U.S. tariffs and deepen tensions between the two economic giants.

Effective April 10, 2025, China’s Ministry of Finance revealed that tariffs on American goods would soar to 84%, up from the previous 34%. This dramatic increase marks a sharp escalation in the trade conflict. Alongside the tariff hike, China has also placed 12 U.S. companies on its export control list, limiting their access to critical Chinese products. Furthermore, six more companies, including Shield AI and Sierra Nevada Corporation, have been labeled “unreliable,” effectively banning them from investing or conducting business in China.

China’s Response at the WTO: Criticism of U.S. Unilateralism

In a statement to the World Trade Organization (WTO), China condemned the U.S. actions, labeling them as “unilateral” and “economic bullying.” The Chinese government expressed grave concern, warning that Washington’s approach violates global trade norms and undermines the multilateral trading system. According to Chinese officials, these aggressive actions will ultimately backfire and hurt the U.S. economy more than it will China.

Trump’s Tariff Surge and Its Economic Ramifications

This latest tariff escalation follows President Trump’s decision to raise tariffs on Chinese imports by an eye-watering 104% earlier this year. In response, China has indicated that it has the “determination and means” to counter any further U.S. actions. To protect its currency and stabilize the economy, China’s central bank has instructed state-owned banks to curb U.S. dollar purchases, seeking to avoid a sharp decline in the Yuan’s value.

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Market Impact: Stocks, Dollar, and Crypto React to Escalating Tensions

The announcement sent shockwaves through global financial markets. U.S. stock futures plummeted, with the S&P 500 suffering its steepest drop since the 1950s, falling nearly 20% from its recent peak. The cryptocurrency market was not spared either, with Bitcoin briefly falling below $76,000 as investors reacted to the growing uncertainty.

Despite the economic fallout, President Trump remained unfazed. In a post on Truth Social, he urged U.S. companies to relocate their operations back to the United States, touting a “GREAT time” to do so with zero tariffs, quick energy connections, and minimal regulatory hurdles. “DON’T WAIT, DO IT NOW!” Trump urged, encouraging businesses to make the move.

China’s Efforts to Stabilize the Yuan Amid Market Turmoil

In an effort to protect the Yuan from further devaluation, China’s central bank has begun instructing state-owned banks to limit their purchases of U.S. dollars. This move signals China’s determination to stabilize its financial system in the face of increasing economic pressure.

With the trade war showing no signs of abating, the global economy faces significant uncertainty. As China and the U.S. continue their economic standoff, the ramifications for international markets, currencies, and trade will be far-reaching. Investors and businesses will need to navigate this increasingly volatile landscape as both sides prepare for what could be a protracted conflict.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.