Donald Trump Reconsiders 100% China Tariffs Amid Crypto Market Crash

United States President Donald Trump said that the proposed 100% tariffs on Chinese imports will not be enforced. When asked during a FOX Business interview if the tariffs would stay, he replied with a firm “no,” suggesting a possible change in trade policy. 

Donald Trump Statement Could Ease U.S.-China Trade Tensions

He also mentioned plans to meet with Chinese President Xi Jinping in two weeks. This could indicate an easing of the current U.S.-China trade tensions. Notably, this news arrives at a crucial time for global markets, particularly as the cryptocurrency sector has been struggling with recent losses. 

The crypto market has seen a significant decline, with Bitcoin dropping over 4% today alone. Analysts link part of the downturn to growing uncertainty about international trade. In particular, the potential effects of high U.S. tariffs on Chinese goods.

Meanwhile, Trump’s recent statement gives some hope that tensions might ease soon. A successful meeting between Trump and Xi could lead to a new trade agreement, which might help stabilize the markets. While the agenda for the upcoming meeting is unclear, market watchers will closely monitor any signs that positions are softening.

Geopolitical Factors Fueling Market Volatility

Undoubtedly, the recent market meltdown coincided with trade tensions between the U.S. and China. The United States president previously announced plans to impose 100% tariffs on all Chinese imports starting on November 1. This is also in response to China’s new export restrictions on rare earth minerals.

Trump criticized Beijing’s policy as a moral disgrace. He also hinted at canceling a planned meeting with President Xi Jinping at the upcoming APEC summit. Although the meeting has been rescheduled.

China, which supplies about 70% of the world’s rare earth minerals, announced that any product containing over 0.1% Chinese rare earths will now need an export license. The new rule is scheduled to take effect on December 1.

Bitcoin Miners Make a Strategic Move to Avoid Tariffs

Recall that the top three Chinese Bitcoin (BTC) miners, Bitmain, Canaan, and MicroBT, moved part of their production to the United States. 

The shift came as trade tensions rose under Donald Trump’s renewed tariff policies. The tariff enables companies to rethink how and where they make and ship technology products, especially in the cryptocurrency industry.

Companies’ decisions are primarily driven by the growing costs of business across borders. By building U.S. mining rigs, these firms aim to avoid additional fees due to tariffs on foreign-made technology goods.

Meanwhile, in July, Trump announced a 30% tariff on goods from the European Union (EU) and Mexico. The news shook the entire crypto market. Before the announcement, BTC had reached a new high of $118,2200. However, the price dropped sharply after the news. This illustrates how markets can react quickly to global political and trade developments.