U.S. Imposes 104% Tariff on Chinese Goods, Bitcoin Drops 10%

On April 9, 2025, the United States officially imposed a 104% tariff on Chinese goods, marking a significant escalation in the ongoing trade dispute. This move, which came into effect at 12:01 a.m. Eastern Time, has sent shockwaves through global markets, particularly the cryptocurrency sector. The Bitcoin market, for instance, experienced a dramatic plunge, with prices dropping to a low of $74,508, erasing nearly 10% of its market capitalization within 24 hours.

This tariff hike is not an isolated event but the culmination of a 37-year journey for President Donald Trump. Back in 1988, Trump purchased an entire page in The New York Times to outline his vision on tariffs and diplomacy. Three decades later, he is putting those ideas into action, implementing a strategy that poses threats to the global supply chain and introduces new uncertainties into the cryptocurrency market.

The tariff increase could drive up inflation or pressure the Federal Reserve to tighten its monetary policy, both of which would be bearish for the crypto market. Additionally, if retaliatory measures are taken in key metal refining sectors such as lithium and copper, it could directly raise the cost of mining hardware, impacting the mining economic model. The potential strengthening of the US dollar due to the tariff war could further amplify the demand for safe-haven assets, including BTC and other decentralized assets.

In response to the market volatility, investors are increasingly seeking secure and efficient asset allocation tools. BiyaPay, the world's first multi-asset trading wallet, has emerged as a valuable resource in this environment. It offers instant fiat-to-crypto exchange, participation in the US stock markets with USDT, zero fees for spot/contract Maker transactions, a compliant B2C fiat withdrawal channel, and secure unfreezing of cards for withdrawals. These features help crypto investors navigate policy uncertainty more effectively.

President Trump's announcement of sweeping tariffs on trading partners, including China, has led to significant market volatility. The tariffs, which include a 104% levy on Chinese goods, are part of a broader trade strategy aimed at pressuring China into signing a trade deal. Trump believes that China will eventually agree to a deal, given their strong interest in resuming normal trade relations. The new tariffs, which come on top of existing 20% duties, would bring the total tariff rate on Chinese goods to 124%.

China has responded forcefully to Trump's announcement, stating that it will "fight to the end" against the new tariffs. The escalating trade war has roiled Asian markets, with investors concerned about the potential economic impact of the tariffs. A billionaire backer of Trump has urged the president to pause the tariffs, warning of a potential "self-induced, economic nuclear winter" if the tariffs are implemented.

The U.S. has begun collecting the 104% duties from China starting April 9, as China missed its deadline to remove retaliatory tariffs. The tariffs are imposed under Section 301 of the Trade Act of 1974, which allows the president to take unilateral action against unfair trade practices. The tariffs are not meant to be permanent and have a limit of four to eight years.

Trump has reaffirmed his commitment to the additional 50% tariff on goods, stating that he has "great respect for China, but they can't do this...we're going to have one shot at this." The escalating trade war has raised concerns about the potential impact on the global economy, with some analysts warning of a potential recession if the tariffs are not resolved. However, Trump has insisted that the U.S. is already bringing in significant revenue from the tariffs, and that they are "great" for Republicans.

The tariffs have also raised questions about the role of Congress in limiting the president's tariff authority. Section 201 of the Trade Act of 1974 allows the president to impose tariffs for a limited period of time, but some lawmakers have called for greater oversight of the president's tariff authority. The escalating trade war has highlighted the need for a more coordinated approach to trade policy, with some calling for greater cooperation between the U.S. and its trading partners.