White House Hikes Tariffs on China to 245% Amid Trade Tensions

The White House has announced a new round of tariff increases on Chinese imports, with duties reaching up to 245%. This significant escalation in economic tensions between the US and China is justified by the White House as a response to national security concerns and China’s retaliatory measures. The announcement marks another chapter in the ongoing trade dispute between the two superpowers, following a series of tit-for-tat tariff escalations.

The immediate market reaction to this announcement is still unfolding, but previous rounds of tariff hikes have caused notable volatility across financial markets, including the crypto market. While the full impact of these new tariffs remains to be seen, the crypto market may not experience the same level of chaos as in previous rounds. This is because the previous tariff announcements, especially first-time policy shocks, tend to cause more panic than follow-up increases. Additionally, this round of tariffs is only aimed at one country, compared to almost the entire planet before, and so far, tech products such as smartphones, computer monitors, and various electronic parts are not part of these tariffs.

However, if China retaliates again, which is a likely scenario, it might bring further instability to the crypto and financial markets. Keeping an eye on Fed statements and bond market behavior will potentially tell us how real the ripple effect is going to be. On the other hand, some analysts believe that aggressive tariff policies are weakening the US dollar. This could benefit Bitcoin and other crypto assets, as they become more appealing as alternative stores of value.