President Donald Trump’s announcement of 100% tariffs on Chinese imports sent shockwaves across financial and crypto markets, pushing Bitcoin down to $102,000 on Binance.
The sudden policy move triggered widespread liquidations and heavy selling pressure across major cryptocurrencies.
The decision has reignited global discussion over the reasons behind the United States’ persistent trade measures against China, a mix of economic, political, and national security motivations that have shaped one of the most significant rivalries in modern trade history.
Why the United States Keeps Imposing Tariffs on China
The United States’ decision to impose tariffs on Chinese goods stems from a combination of economic competition, national security concerns, and domestic political pressure.
For years, the country has faced a major trade deficit with China, importing far more than it exports. Many policymakers believe this imbalance has weakened domestic manufacturing and led to the loss of industrial jobs.
Tariffs are seen as a way to make Chinese goods more expensive, encouraging American consumers and businesses to choose locally made products.
Another major factor behind the tariffs is the accusation that China engages in unfair trade practices.
Washington has repeatedly criticised Beijing for issues such as intellectual property theft, forced technology transfers, and large state subsidies for key industries, including steel, solar panels, and electric vehicles.
These practices allow Chinese manufacturers to lower their global prices, creating what the United States considers unfair competition.
Although accusations of currency manipulation have become less frequent, tariffs remain a tool to pressure China toward more transparent trade behaviour.
National security is also a driving force. The United States views China’s rise in advanced industries like semiconductors, artificial intelligence, and telecommunications as a potential threat to its global influence.
Tariffs and export restrictions serve as tools to limit China’s access to sensitive technologies, allowing Washington to preserve its strategic advantage and reduce reliance on a geopolitical rival.
This approach also reflects a broader shift in the U.S.–China relationship from cooperation to competition. The United States is working to relocate supply chains for critical sectors such as chipmaking, rare earth elements, and electric vehicle production.
Policies like the “CHIPS Act” and “Made in America” initiative are part of a larger effort to rebuild domestic capacity and prioritise “friend-shoring,” where production moves to politically aligned countries rather than remaining dependent on China.
Domestic politics further reinforce the tough stance on trade. Many workers in industrialised states associate China’s economic practices with job losses.
As a result, taking a firm position against China enjoys broad bipartisan support. Both major political parties recognise that standing up to China appeals to voters, making tariffs one of the few policies backed across party lines.
China has responded by imposing its own tariffs on key American exports such as soybeans, cars, and whiskey.
This ongoing exchange began under Trump in 2018 and continued during President Biden’s administration, which has maintained most tariffs and even expanded them in sectors like semiconductors, batteries, and electric vehicles.
These measures are framed as necessary to protect industries critical to the United States’ economic and technological future.
In summary, tariffs are not merely a response to trade imbalances. They represent a broader strategy to strengthen domestic industries, uphold fair trade, protect national interests, and maintain leadership in global technology.
Trump’s 100% Tariff Shock and the Impact on Crypto
When Trump officially announced 100% tariffs on China, markets reacted immediately. Bitcoin futures on Binance plunged to $102,000, marking the lowest level since late June when it briefly dropped below $100,000.
On Coinbase, Bitcoin’s spot price hit an intraday low of $107,000. According to CoinGlass, over $9.4 billion worth of crypto positions were liquidated in just 24 hours, including approximately $7.15 billion from leveraged long trades.
Ethereum and Solana were also caught in the fallout. Ethereum fell to $3,500 on Coinbase, while Solana slipped below $140 on Binance futures. The entire crypto market experienced heavy selling as investors sought safety amid rising global uncertainty.
China’s latest threat to limit exports of rare earth materials added further tension. These materials are vital for producing semiconductors used in artificial intelligence chips, high-performance computing systems, and even cryptocurrency mining equipment.
Restricting their export could disrupt global supply chains, particularly for industries reliant on advanced technology.
Meanwhile, Washington continues to tighten controls on Chinese tech exports and foreign investments to reduce reliance on external manufacturing.
Trump also indicated frustration with Beijing’s policies, suggesting he might skip his upcoming meeting with Chinese President Xi Jinping at the Asia-Pacific Economic Cooperation summit in South Korea.
At present, nearly all goods imported from China already face significant tariffs. Rates vary depending on the product category, reaching about 50% for industrial materials such as steel and aluminium, and around 7.5% for consumer goods.
Analysts from Wells Fargo Economics and the Federal Reserve Bank of New York estimate the average effective tariff rate on Chinese imports to be roughly 40%.
This latest 100% tariff decision marks one of the most aggressive economic measures yet in the ongoing trade conflict.
If maintained, it could reshape global trade flows, prompt further retaliation from China, and sustain market volatility. The crypto sector, often seen as a barometer for investor sentiment, has already shown how sensitive digital assets are to geopolitical events.
Conclusion
Trump’s announcement of 100% tariffs on Chinese goods has reignited global trade tensions and sparked an immediate reaction across markets. Bitcoin’s fall to $102,000 illustrates how intertwined global politics and digital finance have become.
While the move aims to strengthen American manufacturing and protect national interests, it also risks prolonging economic uncertainty and deepening divisions between the world’s two largest economies.
As the standoff continues, investors and traders remain cautious, aware that every new policy move could bring another wave of volatility.
Contributor: Lydicius