Donald Trump has declared that the United States is in a trade war with China. This sentence, pronounced in Washington, marks an intensification of economic tensions. In the process, the markets faltered. Bitcoin, particularly sensitive to geopolitical shocks, plunged. The statement comes as the administration targets Chinese technology imports, directly threatening the mining industry. The American commercial offensive is now taking a strategic turn with immediate repercussions on the crypto ecosystem.
In brief
- Donald Trump confirms that the United States is officially engaged in a trade war with China.
- This statement follows a threat of 100% tariffs on all Chinese imports.
- Washington is reacting to Beijing's tightening of its controls on the export of strategic rare earths.
- This new geopolitical escalation poses a lasting risk for the balance of the global crypto market.
An unequivocal statement: Trump chooses confrontation
The American president confirmed that the United States was no longer content with preparing an economic response. They are now fully engaged in a trade conflict with China. This position follows a threat to increase customs tariffs to 100% on all Chinese imports, mentioned a few days earlier on social networks.
“Well, we’re already in a trade war.”. These words, spoken by Donald Trump in front of journalists at the White House, put an end to all ambiguity.
Trump justified this posture by the imperatives of economic sovereignty and national security, declaring: “If we didn't have tariffs, we would have no defense. They (China) used them against us”.
Trump's statement comes amid rising economic tensions, triggered by a decision by Beijing to restrict the export of rare earths, materials essential to the manufacture of semiconductors.
Faced with this, Washington adopted an offensive posture, supported by the Secretary of the American Treasury, Scott Bessent. He denounced China's economic practices and warned of their potentially counterproductive effects. Here are the key points to remember:
- Trump confirmed that the United States is already engaged in a trade war with China;
- He threatened to impose 100% tariffs on all Chinese imports;
- He considers these measures essential to national economic defense;
- Beijing has tightened restrictions on rare earths, which Washington perceives as a form of pressure;
- Scott Bessent has declared that “if some within the Chinese government want to slow down the global economy (…), the Chinese economy will suffer the most”;
- He concluded by saying: “It’s not just the United States versus China. It's China against the world”.
This frontal confrontation lays the foundations for a prolonged confrontation, the implications of which will go far beyond the bilateral framework to affect the global economic balance.
Conflict-proof crypto
While Trump's remarks confirmed the opening of a new economic front, the crypto market did not wait for his official statement to react. It was his message published last Friday on social networks, threatening China with 100% tariffs, which triggered a brutal fall in bitcoin.
In the space of a few hours, BTC fell from $121,560 to less than $103,000, marking one of the most significant declines in several months. The sudden drop was seen as a combined reaction to rising trade tensions and excess leverage in derivatives markets.
On a more structural level, the mining sector in the United States is also affected by this new commercial dynamic. Customs tariffs on mining machines (ASIC) have been significantly increased: 57.6% on equipment coming from China, and 21.6% for that coming from countries such as Indonesia, Malaysia or Thailand.
These additional costs complicate operations for American companies in the sector, which must deal with a sudden increase in import prices. Added to this are administrative obstacles. Last year, thousands of machines were seized by customs on suspicion of being non-compliant radio frequency devices. To date, no major mining player has relocated its activities, but the economic equation is becoming more complex.
If the immediate reaction of the markets stabilized, the price of BTC recorded a slight increase of 0.1% one hour after the declaration, uncertainty remains high. The trade war could lead to lasting tensions on mining supply chains, and weigh on investment in American crypto infrastructure. Additionally, indirect effects on overall markets, including stocks and commodities, could fuel a new phase of volatility for bitcoin, often considered both a speculative and safe-haven asset.
Maximize your Tremplin.io experience with our 'Read to Earn' program! For every article you read, earn points and access exclusive rewards. Sign up now and start earning benefits.
