Cryptocurrency markets experienced a sharp decline following comments from former U.S. President Donald Trump regarding new tariffs on Chinese imports. On October 10, Trump announced plans to raise U.S. tariffs by 100 percent on all critical software imports from China, citing China’s recent export restrictions on rare earth minerals as a provocative move.
At approximately 6:10 AM, Bitcoin witnessed a significant drop of approximately 8%, trading at $112,592.31, while Ethereum saw a decline of around 12%, falling to $3,845.92, according to data from CoinMarketCap. The market turmoil resulted in about $9.5 billion in liquidations, particularly as Bitcoin failed to maintain its support level around $120,000.
In a post on his platform, Truth Social, Trump expressed his frustration with China’s trade practices, describing them as “extraordinarily aggressive.” He highlighted that China had issued a “hostile letter” indicating its intent to implement extensive export controls on various products by November 1, 2025, impacting countries worldwide.
Trump condemned the situation as unprecedented in international trade, calling out the moral implications of such actions on diplomatic relations. He declared, “The United States will impose a Tariff of 100% on China,” effective immediately, alongside additional export controls on critical software.
The remarks have sent shockwaves through the cryptocurrency market, reflecting the interconnectedness of global trade policies and digital asset performances. Investors are left navigating the uncertainty surrounding geopolitical tensions and their potential economic repercussions.
