China Calls US Tariffs a “Joke” – How Does This Rhetoric Affect Bitcoin?
China will increase tariffs on U.S. imports to 125% starting April 12, 2025. The move follows the U.S. decision to raise tariffs on Chinese goods to the same rate. Beijing calls the U.S. action a violation of trade rules and economic norms.
The State Council Tariff Commission announced the tariff hike today, April 11. The new rate will replace the previous 84% tariff set in March. The decision follows the U.S. government’s April 10 announcement to raise tariffs on Chinese exports to 125% under a “reciprocal tariff” plan.
China’s new tariffs will apply to many imported goods from the United States. The commission said that U.S. products are not viable in the Chinese market at the current tariff level.
Related: Billionaire Investor Ray Dalio Warns that Tariffs are Only the Beginning
“Given that there is no market acceptance for U.S. goods at this level, China will ignore further moves by the United States,” the statement said. The new measures are based on China’s Tariff Law, Customs Law, and Foreign Trade Law, along with principles of international law.
In addition to the tariff hike, the commission said all provisions outlined in its previous announcements will continue to apply. These earlier measures covered lists of affected products and tariff schedules.
Meanwhile, China’s Finance Ministry condemned the latest U.S. actions. “Even if the U.S. continues to impose higher tariffs, it will no longer make economic sense and will become a joke in the history of world economy,” the ministry said.
However, if the U.S. insists on continuing to infringe on China’s interests substantially, China will resolutely counterattack and fight to the end,” the statement said.
Earlier this month, the U.S. imposed a broad set of “reciprocal” tariffs. While many countries received a 90-day suspension of those tariffs, China was pointedly denied this delay.
In a social media post, President Trump accused China of showing “a lack of respect” for global markets and announced an immediate hike to 125%.
In Europe, German Finance Minister Joerg Kukies said the EU may consider its response if talks with the U.S. failed. He urged the EU to take a nuanced approach, noting Europe’s trade surplus in goods and deficit in services. He also called for strengthening Europe’s digital services to reduce reliance on U.S. providers.
This rapid escalation in US-China trade friction immediately impacted cryptocurrency markets, creating significant volatility. Bitcoin, for instance, dropped below $74,000 before recovering to around $81,500. Around the same time, Ethereum traded lower, slipping over 2% in 24 hours to near $1,548.
Related: Tariff Shock Reveals a Two-Tier Crypto Market: BTC vs Everyone Else?
Analysts attribute the decline to investor concerns over global economic slowdown and rising inflation driven by the tariff war. Although the immediate impact has been bearish, some market watchers suggest that cryptocurrencies like Bitcoin could gain long-term appeal.
They believe Bitcoin can serve as a hedge against economic instability, especially if geopolitical tensions persist.
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Universeofcrypto
2025/04/07 09:07
long-term crypto gains from economic disruption:
International economic pressure on crypto and other assets will be unevenly spread between the US and its trading partners due to the trade war.
“The tariff costs, most likely through higher inflation, will be shared by both the US and trading partners, but the relative impact will be much heavier on foreigners,” Park wrote on X on February 2. He noted that impacted nations would struggle to handle growth issues.
Bitcoin may ultimately benefit, but Park predicts worldwide market misery first. Crypto would rise despite economic suffering and wealth loss from trade wars.
Crypto Impact: Experts Call New Tariffs ‘Stagflationary’
In an April 2 social media statement, economist and hedge fund manager Ray Dalio called tariffs “stagflationary for the world as a whole”. He emphasized that tariffs deflate nations producing taxed items and inflate those importing them.
Dalio predicts a massive financial system upheaval due to global debt and trade imbalances. The decades-old global monetary order may change with this transformation.
Lower interest rates may indicate market strategy
Financial watchers say economic turmoil may be purposeful. Asset manager Anthony Pompliano said that the president may be upsetting financial markets to decrease interest rates and cut US debt management costs.
From 4.60% in January to 4.00% now, 10-year US Treasury bond interest rates have declined. While this method produces short-term market hardship, Pompliano believes lower interest rates will promote borrowing and raise asset values.
According to this concept, Bitcoin and other risk assets may gain in the long term despite tough trade policies' immediate economic hurdles.

CoinPhoton-News
2025/04/06 03:52
On April 3, 2025, Ray Dalio, founder of Bridgewater Fund, shared his insightful views on the impact of tariffs on X, emphasizing both short-term and long-term effects on the global economy.
Tier 1 Impacts (Direct Effects)
Increase in tax revenue: Tariffs are shared by foreign producers and domestic consumers, with the distribution depending on price elasticity.
Reduction in global production efficiency: Tariffs hinder free trade, reducing resource allocation efficiency.
Global stagflation effects:
For tariffed countries (exporters like China, Japan, South Korea, Vietnam) → Deflationary pressure.
For tariff-imposing countries (importers like the US) → Inflationary pressure.
Protection of domestic businesses: Tariffs reduce foreign competition, helping domestic businesses survive but may decrease their efficiency.
Geopolitical need: During great power conflicts, tariffs help maintain domestic production capabilities.
Reduced economic dependency: Tariffs reduce reliance on foreign goods and capital, especially in times of geopolitical tension.
Tier 2 Impacts (Dependent on Countries' Responses)
Risk of trade wars: If tariffed countries retaliate, global stagflation effects will intensify.
Central bank policy adjustments:
Tariffed countries → Currency devaluation, reduced interest rates (to ease deflationary pressure).
Tariff-imposing countries → Currency appreciation, higher interest rates (to curb inflation).
Fiscal policy adjustments:
Deflationary countries → Increase fiscal stimulus.
Inflationary countries → Tighten fiscal policy.
Long-Term Impacts (Macro Trends)
Global economic imbalances (debt, trade, capital flows) must be corrected, as the current monetary and geopolitical systems are unsustainable.
Adjustments may be sudden and unconventional, like policy interventions or market fluctuations.
Future economic strength depends on:
The reliability of debt markets (USD's status as a reserve currency).
Productivity levels of countries.
Attractiveness of political and investment environments.
The US Dollar Issue
The USD, as a reserve currency, offers advantages (increasing demand for US bonds) but can lead to excessive borrowing and unsustainable debt.
Appreciation of the Chinese RMB might be part of US-China negotiations, impacting global capital flows and monetary policies.
Conclusion
The impact of tariffs is complex, involving both short-term economic effects and long-term global economic structural adjustments. Ray Dalio believes that global debt and economic imbalances must be addressed, and tariffs and monetary policies will play a crucial role in the future power dynamics between nations.