U.S. President Donald Trump has threatened to impose an unprecedented 104% tariff on Chinese imports, rattling global financial markets and sending shockwaves through the crypto sector. The ultimatum could escalate the ongoing trade war and disrupt global growth.

Trump’s Trade War Ramps Up

New threat would double tariffs if China doesn’t retreat

Trump warned that unless China withdraws its 34% retaliatory tariffs by April 8, the U.S. will impose an additional 50% tariff starting April 9. This would raise the total effective tariff on Chinese goods to 104%, with certain sectors like autos and electronics hit even harder.

Market Volatility Spikes

Bitcoin surges then drops amid panic and speculation

Following Trump’s social media post, Bitcoin jumped to a high of $81,119 before falling back to $78,321. The price action reflects extreme uncertainty, as investors brace for ripple effects across inflation, trade, and consumer demand.

Historical Context Raises Alarm

Tariff levels not seen since the Great Depression

The average U.S. tariff rate rose to 18.8% after the April 2 “Liberation Day” declaration, the highest since the Smoot-Hawley Act of 1930. Analysts warn such moves could trigger a broader downturn, particularly if other nations respond with retaliatory measures.

Traders Bet on Reversal by Summer

Polymarket odds shift rapidly as traders weigh Trump’s strategy

On Polymarket, 59% of users now believe Trump will reverse most of these tariffs by July. This figure rose sharply from 33% just a day earlier, indicating a belief that the president may be bluffing or will negotiate a soft landing.

$1 Trillion Crypto Wipeout Since February

Risk aversion leads to massive outflows in digital assets

Crypto markets have lost over $1 trillion in value since February, driven by macro fears and reduced liquidity. The uncertainty surrounding U.S.-China trade policy is pushing investors away from risk assets, with Bitcoin now behaving more like traditional equities in its response to economic shocks.

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Key Info Box

• Tariff Threat: Up to 104% on Chinese imports
• Deadline: April 8 ultimatum
• Bitcoin Response: High at $81K, drop to $78K
• Historical Comparison: Highest tariffs since 1930