China recently announced a 10% tariff on US crude oil and agricultural machinery in response to US tariffs on all Chinese imports, reigniting fears of another prolonged trade war.
The ongoing trade dispute between the US and China has escalated further, triggering significant volatility in global markets, including cryptocurrencies.
Market Fallout and Crypto Reaction to US-China Trade Wars
China imposed a 15% tariff on US coal and LNG while adding a 10% levy on crude oil and farm equipment. The move comes after US President Donald Trump reintroduced aggressive trade policies to curb China’s economic influence.
While market sentiment initially soured, some analysts argue that China’s latest tariffs may not have as severe an impact as initially feared. According to The Crypto Lark Davis, China imports relatively little from the US in the affected categories.
“China imports 6% of its LNG from the USA. 4 million tons versus USA total export globally of 87 million tons in 2024. Coal the USA ships about 6% of its coal exports to China. For agricultural equipment, could not find any firm numbers so it seems to be small. This is not the equivalent of the Mexico and Canada trade disputes,” Davis explained.
Davis believes the market’s reaction may be overblown and warns against panic-driven selling. Borovik, another popular user on X, echoes this sentiment, stating that traders dumping crypto in response to the tariffs will likely regret it in 48 hours as the market stabilizes.
In contrast to the US-China tensions, a temporary trade reprieve between the US and Canada eased market concerns. As BeInCrypto reported, Trump agreed to delay tariffs on Mexico and Canada for 30 days. In return, there will be enhanced border enforcement against drug trafficking and illegal migration.
The development prompted a quick recovery for Bitcoin, which briefly reclaimed above the $100,000 milestone. This suggested that crypto markets remain highly reactive to geopolitical shifts. However, analysts remain cautious, with many expecting continued volatility as the trade war evolves.
Andrew Kang, a well-known crypto market analyst, warned that Ethereum (ETH) prices could retreat to the $2,200-$2,400 range if the trade war intensifies. As of this writing, the Ethereum price was $2,722, up by almost 8% since the Tuesday session opened.
“Back to 2200-2400 if China trade war is real,” Kang wrote.
In hindsight, over $2 billion had been wiped out from the crypto market on Monday in a historic liquidation event. Despite the panic, seasoned investor Robert Kiyosaki remains bullish on Bitcoin. He labeled the price drop a “buying opportunity,” emphasizing that crypto remains a hedge against inflation and economic instability caused by geopolitical tensions.
The historical resilience of Bitcoin and cryptocurrencies in turbulent times remains a key talking point.
Jeff Park, head of Alpha Strategies at Bitwise Asset Management, foresees Bitcoin’s inevitable rise despite short-term fluctuations. He argues that the crypto market is becoming a haven for investors seeking alternatives amid global trade uncertainty.
“Tariffs might be just a temporary tool, but the permanent conclusion is that Bitcoin is not only going higher—but faster,” Park wrote.
While the trade war introduces fresh volatility, seasoned traders highlight the importance of strategic decision-making. As the US and China continue their economic standoff, the crypto market will likely experience further swings. However, long-term holders and institutional investors may find opportunities in the chaos.
BeInCrypto data shows BTC was trading at $99,474 as of this writing, up by almost 6% since Tuesday’s session opened.
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