China Strikes Back: Tariff Retaliation Sends Global Markets and Crypto Tumbling

Just a week after former U.S. President Donald Trump’s shocking announcement of 100% tariffs on Chinese imports, Beijing has responded — and global markets are feeling the tremors.

China’s retaliatory sanctions targeted U.S. subsidiaries of the South Korean shipbuilder Hanwha Ocean, reigniting fears that the trade dispute could spiral into a full-blown economic conflict. The move shattered the fragile calm that had briefly returned after initial talks of restraint between the two sides.

The market reaction was swift and brutal:

• Asian equities plunged, with Japan’s Nikkei down more than 3%, its worst session in nearly two months.
• U.S. and European futures followed lower as investors sought safety.
• The yen strengthened, while gold and silver erased earlier gains.
• Treasury yields eased to near 4.03% as money flowed into bonds.

And once again, the crypto markets mirrored traditional markets.
Bitcoin dropped below $112,000, Ethereum slid to around $4,000, and BNB tumbled more than 10%. Altcoins like Solana, XRP, and Dogecoin fell between 5–6% in 24 hours.

Total liquidations hit $630 million, with most losses coming from long positions.
This follows last week’s record $20 billion liquidation event after Trump’s tariff threat — the biggest in crypto history.

The message is clear:
The global economy remains tightly wound around political and trade tensions. As China and the U.S. edge deeper into tariff warfare, risk assets — from stocks to crypto — are caught in the crossfire.

Source: CoinDesk