The trade tariff war between China and the United States is far from over. In a recent development, the Chinese State Council Tariff Commission has made an official announcement for the increment of the tariffs to the U.S. This move by China comes as direct retaliation for the 125% reciprocal tariffs imposed by Donald Trump in April. 10.
These new tariffs to the U.S spark a potential impact on the crypto market which experienced a recovery as Trump put a 90-day pause on the tariffs to other countries. However, the crypto market has remained steady for now.
Chinese Retaliation with 125% Tariffs
President of China Xi Jinping has continued to retaliate against the U.S with more tariffs as the trade war between the two economic giants heats up. As announced by China’s State Council Tariff Commission on April. 11, 2025, the Asian nation has increased the tariffs to U.S imports to 125%. This move comes as retaliation following Donald Trump’s decision to not only exclude China from the 90-day tariff pause but also raising the tariffs to a total of 145%.
China made it clear that the tariffs imposed on its exports by the U.S violate international economic and trade rules and thus is unacceptable. “The US’s imposition of abnormally high tariffs on China seriously violates international economic and trade rules, basic economic laws and common sense,” the official announcement read. Furthermore China termed the tariffs by the U.S as ‘completely unilateral bullying and coercion.”
However, China also highlighted that their move to raise the tariffs to American imports to 125% is in accordance with China’s Customs Law, Tariff Law, and Foreign Trade Law. The new tariffs will thus get into effect from April. 12, 2025.
Additionally, China also emphasized that it will not make any further additions to the current tariff rate even if Donald Trump decides to hike the tariffs further. China’s statement sighted that a tariff increment moving forward is of no sense as goods imported from the U.S have lost market acceptance in China under the current tariff.
History of the China and U.S Tariff War
The ongoing trade tariffs war between the United States and China is not the first of its kind. Both countries have imposed retaliatory tariffs between each other since 2018. Some of the key sectors affected by these tariffs include technology, energy and the agricultural sector.
With China increasing tariffs to the U.S to 125% in retaliation to 125% increase by the U.S, global supply chains could be massively impacted. The tariff war even risks creating an unfavorable environment which could deter economic growth in both countries. Most likely, inflation could be looming in both nations and consumers should prepare to face hiked prices of commodities.
Crypto Market Remains Unshaken by China’s Tariffs Hike
The tariff war between China and the United States has previously shaken the crypto market. However, despite the news that China has increased its tariffs to imports from the U.S to 125%, the crypto market has remained steady. As of the data by TradingView, the total crypto market cap (TOTAL) has maintained above $2.5 Trillion.
The steady TOTAL depicts that market participants are not shaken. Furthermore, Bitcoin is trading at $81,713.05 with a small rise of 0.90% on the day. Other cryptocurrencies have also remained steady with Ethereum trading at $1,555.07 with a 1.23% surge. However, market participants should monitor the crypto market moving forward to determine whether resilience will prevail.
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