In a dramatic escalation of the US-China trade war, Trump threatened to raise tariffs on Chinese imports. He announced on Truth Social that China would face a 50% tariff unless it removed retaliatory measures by 8 April 2025.

These measures would push the total tariffs on Chinese goods to 104%. The specific items, like automobiles and electronics, should face even higher rates.

The US has already imposed a 54% tariff on Chinese goods. China retaliated with 34% tariffs on US products. It has led to rising concern in both stock and crypto markets.

Since the announcement of the 'Liberation Day' tariff increase, average US tariffs on foreign goods have reached 18.8%. As a result, the crypto market has lost$1 trillion in value. Traders are fearing rising inflation and negative economic consequences.

However, some traders remain optimistic, believing that Trump's tariffs are a negotiating tactic rather than a long-term measure. Recent polling on Polymarket shows that 59% of traders expect Trump to reduce most tariffs by July.

Bitcoin's price spiked to$81,119 following the announcement, only to fall back to$78,321 as traders await further developments.