TLDR
- Bitcoin dropped to $102K on Binance after Trump announced 100% tariffs on all Chinese goods in response to export restrictions.
- China’s rare earth export ban, effective Nov 1, 2025, targets semiconductors and crypto mining industries globally.
- Trump’s tariff announcement mirrors April’s market shock, sparking recession fears and ongoing crypto volatility.
- Bitcoin fell below $110K for first time in months as US-China trade tensions escalate over tech supply chains.
US President Donald Trump’s announcement of a 100% tariff on Chinese goods has triggered a significant reaction in global markets, particularly in the cryptocurrency space. On Friday, Bitcoin’s price dropped sharply, dipping below $110,000, a level not seen in months.
The news comes after China’s move to impose export restrictions on rare earth minerals, essential for various industries, including semiconductors and crypto mining. Trump linked his tariffs to China’s actions, which could further strain global supply chains.
Trump’s Response to China’s Export Restrictions
The United States has been monitoring China’s growing influence in the tech and rare earth mineral markets. Recently, China revealed plans to implement large-scale export controls on key products, effective November 1, 2025. These products, primarily rare earth elements, play a crucial role in the manufacturing of semiconductors, AI hardware, and other technologies. President Trump responded with a declaration that his administration would impose tariffs on all Chinese goods in retaliation, aiming to limit China’s ability to manipulate these critical markets.
China’s export restrictions have raised concerns about potential disruptions in the global hardware supply chain. With rare earth elements being fundamental to the production of semiconductors, the US government views China’s actions as an aggressive attempt to dominate the global tech landscape. Analysts now worry that these moves will further strain relationships between the two countries and potentially impact industries reliant on these materials, including high-performance computing and cryptocurrency mining.
Impact on Bitcoin and Crypto Markets
In response to Trump’s announcement, Bitcoin’s price dropped sharply. The BTC/USDT futures pair at Binance fell to as low as $102,000, marking its lowest point since June. This significant downturn in Bitcoin’s price highlights the ongoing sensitivity of the crypto markets to geopolitical developments. Traders and investors closely monitor these events, as regulatory changes and tariff disputes can directly impact the value of digital assets like Bitcoin.
The drop in Bitcoin’s price is also tied to broader economic concerns. Trump’s previous tariff announcements in April already sent shockwaves through crypto markets, sparking fears of a potential recession. As the US and China continue to clash over trade policies and export controls, it’s likely that volatility in the crypto market will persist.
Global Trade Tensions and US Measures
The broader context of the tariff dispute between the US and China is one of shifting trade policies aimed at reducing the US’s reliance on Chinese manufacturing. In addition to the tariffs, the US has imposed several measures aimed at curbing Chinese tech exports and investments.
These steps are part of a larger strategy to address the growing dependency on foreign-made technology and to protect domestic industries from the risks posed by foreign influence. As the situation unfolds, analysts will continue to assess its impact on global trade and digital asset markets.
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