China Raises Tariffs to 125%, U.S. Hits with 145% — BTC Holds Ground

China has announced a hike in tariffs on U.S. goods, effective April 12, escalating the trade dispute between the world’s two largest economies.

According to official sources, China will increase tariffs on U.S. imports from 84% to 125%. Chinese authorities claim this move aims to make American products less competitive in the domestic market.

In retaliation, the United States has raised tariffs on Chinese goods to 145%.  

This intensifying trade conflict is not only straining bilateral relations but also impacting global financial markets. Representatives from both countries are calling for talks to stabilize the situation, but their positions remain entrenched, with each side justifying its actions with firm rhetoric.

Read more: Beyond the Tariffs: The U.S.–China Trade War’s Ripple Effect on Crypto

Amid the latest escalation in the U.S.-China trade war, Bitcoin dropped from $83,500 to below $79,000. However, within 24 hours, the crypto asset began to rebound, climbing back above $82,000 (at the time of writing). 

This suggests a more subdued response from the crypto market compared to previous reactions to tariff news from the U.S.

Details of U.S. and China Tariff Changes

According to China's Ministry of Finance, the country set new tariff rates in response to the U.S. raising tariffs. Chinese officials noted that American goods are no longer competitive under the current tariffs. Therefore, the country will disregard any further U.S. tariff hikes.

Given that American goods are no longer marketable in China under the current tariff rates, if the US further raises tariffs on Chinese exports, China will disregard such measures,

the Ministry stated.

For context, annual trade between the two nations amounts to roughly $700 billion.

Reactions from Officials and International Experts

As the trade conflict intensifies, experts warn that the situation could escalate even further.

While tit-for-tat tariffs may take a pause now as China signals, any other retaliatory measures from the US will only lead to further escalation,

said Michelle Lam, Senior Economist for Greater China at Societe Generale.

President Donald Trump expressed his intent to get a deal with China to reduce tensions. U.S. officials stressed the need for a stable tariff regime to ensure predictable trade relations. At the same time, Chinese leaders have ruled out the possibility of further tariff hikes from the U.S., signaling Beijing's confidence in its strategy. 

No matter how the external environment changes, China will stay confident, remain calm, and focus on managing its own affairs,

said Xi Jinping in a meeting with Spain's Prime Minister, reinforcing China's firm stance.

Read more: Trump’s Tariffs Threaten Blockchain Infrastructure