U.S.-China Trade War Sends Markets Reeling

President Trump just turned up the heat on global trade, slapping new tariffs on goods from China, Mexico, and Canada. And he’s not stopping there—some EU countries might be next.

But China isn’t backing down. They've hit back with 15% tariffs on U.S. coal and gas, plus an extra 10% on oil and farming equipment. The trade war is officially in full swing. 

In what looks like a calculated counterattack, Chinese authorities have launched an antitrust investigation against Google, alleging breaches of China’s competition laws. The timing is no coincidence—Bloomberg reports the probe began mere minutes after Donald Trump’s tariff announcement.

This retaliatory move is being viewed as a “warning shot” against the U.S., potentially setting the stage for broader tech sector conflicts.

Amid these developments, investors started pulling their money out of risky assets, cryptocurrencies included. Bitcoin (BTC) dropped 4.1% to about $95,400, and Ethereum (ETH) tumbled 17% to $2,577. Even the meme coins TRUMP and MELANIA weren’t spared—they took a massive hit and are now trading 88% below their record highs.

Other digital currencies weren’t immune either, with Dogecoin (DOGE) falling 5.8% and XRP dropping 5.1%. These declines reflect a general loss of trust in digital assets during a time of global economic uncertainty. Overall, the crypto market’s value has fallen from $3.6 trillion to $3.1 trillion.

In spite of this sweeping sell-off, investors remain cautious, unwilling to rush into the abyss of bottom-priced assets. The Fear and Greed Index lingers in a state of neutrality, as the market collectively waits to be steered by the impending winds of geopolitical change.

It wasn’t just the world of cryptocurrencies that took a hit this time. Stock and commodity markets were under pressure as well: 

1. NASDAQ 100 futures fell 1.7% ahead of the U.S. market opening, with a slightly smaller decline of 1.2% by the close. 
2. Natural gas prices sank by 2%.
3. And crude oil dipped by 1.74%. 

Only copper defied the trend, registering a modest gain of 0.35%.

As trade war between the US and China ramps up, uncertainty is taking its toll on financial markets. In the short run, this has meant lower prices for cryptocurrencies and other speculative assets. But over the long haul, we might see a rising interest in decentralized financial systems, as investors look for options that aren’t bound by government regulations.

In this light, while the current turmoil presses down on the crypto sphere, it simultaneously reveals the profound promise and necessity of decentralized financial instruments amid global economic unrest.