According to CNBC, the White House made an announcement that it would raise the tariffs on goods from China to 104%. This has led to US vs China trade disputes. This Tariff hike is a big step in the ongoing trade fight between the U.S. and China. Because of this news, the global market is in a lot of worry.
Major U.S. stock markets went down, and Bitcoin (BTC)also dropped by more than 3%. The new tariff plan is part of President Donald Trump’s effort to pressure China, but it also gave rise to fear that it might slow down the U.S. economy.
Tariffs Rise After China Refuses to Back Down
Originally, the U.S. made a plan to increase the tariffs by 34% on Chinese imports. But President Trump added another 50% increase as China refused to cancel its tariffs against the U.S. This caused the total tariff rate to increase to 104% and initiated US vs China trade war.
The White House told CNBC that this decision was made to send a clear message that the U.S. would not tolerate what it sees as unfair trade practices.
The recent US vs China trade war is considered one of the biggest tariff increases in the history of the world economy and it is already causing an effect on markets. Both the traditional financial market and Cryptocurrencies are showing signs of stress.
U.S. Stock Markets Close Lower
The current US vs China trade disputes have significantly impacted the global stock market. Many global investors have started to sell their shares, following the cause of growing economic tension.
The Nasdaq composite index dropped by 2.1%. The S&P 509 has fallen down by 1.3% and has dropped below the level of 5,000. Moreover, the Dow Jones Industrial Average has also slipped down by 1.2%.
According to the Kobeissi letter, just five hours before the drop, the S&P was trading near 5,300. This sudden fall highlights that investors are starting to worry that the ongoing US vs. China tariff fight might hurt the company’s profits, raise consumer prices, and disrupt global supply chains.
Bitcoin Falls as Crypto Market Feels the Pressure
The news about increased tariffs and the U.S. vs. China trade war didn’t just impact the stock market but also caused fluctuation in the crypto market. Bitcoin, which is the largest Cryptocurrency, has also dropped by 3.15%, falling below $65,000. The other digital currencies also went down as investors became more aware of the growing uncertainty about trade tensions and the economy.
Even in the recent decline, some experts in the crypto industry are still positive. The CEO of Binance, Richard Teng posted on X saying that the current economic situation might increase the long-term interest for Decentralized digital assets like Bitcoin.
He said that during this financial stress and changing government policies, more people might turn towards crypto as a safer option and independent store of value.
Trump Says Tariffs Are Needed for Fair Trade
During the press conference on Air Force One, President Donald Trump supported the tariff hike. He said this move was required to stop the unfair trade imbalances, which hurt American workers and industries for years.
He agreed that this decision might cause short-term pain, but he said that this step was necessary to protect the U.S. economy.
White House press Secretary Karoline Leavitt supported President Trump’s decision; during a statement on Thursday, she said that countries like China are making mistakes by choosing to retaliate and by mistreating American workers.
Leavitt praised Trump’s approach by saying that President Donald Trump has a spine of steel and will not break down. Her statements made it clear that the administration is not planning to back down from the aggressive tariff strategy.
Conclusion
The U.S. vs. China trade war became more serious because of increased tariffs by the White House; this caused market drops and raised the worry about the economy. Though Trump says that this move is needed, many experts are worried that it might have an impact on world trade and would raise the prices for regular people.
FAQs
1. The White House increased the tariff rates by what percentage?
The White House raised the Tariff on Chinese imports by 104%.
2. How did the current US vs China Tariff disputes impact Bitcoin?
Bitcoin price declined by 3% due to US vs China trade war.
3. What was the initial tariff percentage on Chinese goods?
The US on April 2 imposed a 34% tariff on Chinese goods.
4. When will the White House increase the additional 50% Tariffs?
From April 9 2025, it will be officially executed.
5. When did the White House officially announce trade tariffs on China?
On April 8, 202,5 White House officially announced trade tariffs on China.
Glossary
US Tariff – A tax added by the US to goods of other countries.
US vs China Trade War – A trade conflict where both countries raise taxes on each other’s goods.
CNBC – A news website that reports on finance.
Dow Jones – A major stock market index
S&P 500 – A list of 500 big companies’ stocks
Sources
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