US President Donald Trump officially confirmed that the United States is now engaged in an active trade war with China, following his recent threats to impose a 100% tariff on all Chinese imports. When asked by reporters whether the country was preparing for a prolonged conflict, Trump responded, “Well, we’re in one now.” He added, “If we didn’t have tariffs, we would be exposed as being a nothing, we would have no defense,” framing the tariffs as a matter of national security.

Market reacts to tariff threats

Trump’s initial announcement last Friday triggered a sharp decline in cryptocurrency markets. Bitcoin dropped from about $121,560 to below $103,000 within hours, leading to widespread liquidations across the market. The move came after China imposed export restrictions on rare earth minerals—materials essential for semiconductor production.

However, following Trump’s latest remarks, markets appeared largely stable. Data from CoinGecko shows that Bitcoin even gained 0.1% in the past hour, indicating that investors may have already priced in the escalating trade tensions.

US officials criticize China’s trade actions

US Treasury Secretary Scott Bessent condemned China’s economic measures earlier this week, warning that Beijing’s decisions could backfire. “If some in the Chinese government want to slow down the global economy through disappointing actions and through economic coercion, the Chinese economy will be hurt the most,” Bessent said, emphasizing that “We and our allies will neither be commanded nor controlled by a group of bureaucrats in Beijing.”

Tariffs impact Bitcoin mining sector

The trade dispute has also affected the Bitcoin mining industry in the United States. Trump’s tariffs have significantly raised the cost of importing mining equipment, with rates now at 57.6% for Chinese-origin ASIC miners and 21.6% for machines from Indonesia, Malaysia, and Thailand. These higher costs have made it more expensive for US-based miners to expand or replace equipment.

Last year, the US Customs and Border Protection also seized thousands of Bitcoin miners under suspicions of illegal importation, further complicating supply chains. Despite these challenges, major US mining companies have yet to move their operations overseas, suggesting they remain committed to domestic production despite the financial strain.

The ongoing trade conflict continues to ripple across multiple sectors, from traditional manufacturing to digital assets, as both nations tighten control over strategic industries like semiconductors and cryptocurrency mining.

Sources:

https://cointelegraph.com/news/trump-declares-us-trade-war-with-china

https://www.coingecko.com/