Cryptocurrency markets have experienced significant downturns after Donald Trump announced plans to enforce a 100% tariff on Chinese goods very soon.
The United States will also introduce export limitations on “any and all critical software” following President Trump’s accusations that China is manipulating global trade through its own export restrictions.
On Truth Social, Mr. Trump stated: “Beginning November 1st, 2025 (or possibly sooner, depending on any developments from China), the United States will enforce a 100% tariff on Chinese goods, in addition to any existing tariffs currently imposed.
“On the same date, we will activate Export Controls on all critical software.”
He explained that these actions come in response to China’s plans for “massive export restrictions on nearly all products they manufacture.”
The US currently applies a 30% tariff on imports from China, meaning the new proposed rate would rise to a staggering 130%.
The announcement triggered a sharp decline in cryptocurrency values. Bitcoin dropped over 10% to below $110,000 before slightly rebounding to $113,096. Ethereum’s value decreased by 11.2% to $3,878. Other cryptocurrencies, including BNB, Solana, and XRP, saw drops of 14.29%, 14.9%, and 17.99% respectively.
Wall Street shares also took a hit on Friday, following an earlier message on Truth Social where Mr. Trump hinted at a “huge” tariff increase and indicated he might cancel an upcoming meeting with President Xi Jinping amid tensions relating to rare earth minerals.
American stocks faced their largest one-day declines since April. The S&P 500 index plunged by 2.71%, marking its worst trading performance since April 10, shortly after Mr. Trump’s “Liberation Day” tariffs were announced.
The Nasdaq index fell by 3.56%, while the Dow Jones Industrial Average dropped by 1.9%.
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In response to these developments, traders reduced their forecasts for potential interest rate cuts this year, as new tariffs have rekindled inflation concerns. The FTSE 100 index closed down 0.9% in London, reflecting worries about the overall global implications of these disputes.
Mr. Trump’s recent actions have reignited concerns about a possible resurgence of trade tensions between the two major economies.
This year, the US implemented tariffs soaring up to 145% on certain Chinese imports following Mr. Trump’s “Liberation Day” tariffs, provoking China to retaliate with levies of 125% on US goods, disrupting global markets significantly.
Since then, tariffs had been notably lowered as tensions lessened. In May, after several discussions, Mr. Trump decreased tariffs on Chinese products to 30%. Analysts were optimistic for progress towards a trade agreement with both leaders’ meeting scheduled in South Korea later this month.
