TLDR
- China announced retaliatory measures with tariffs of 10-15% on American coal, LNG, oil, and machinery following U.S. tariffs
- Global crypto markets experienced a downturn, with Bitcoin dropping to $98,500 while showing more stability than altcoins
- Other cryptocurrencies saw larger losses, with Dogecoin down 5.8% and XRP falling 5.1%
- China simultaneously launched an antitrust investigation into Google and expanded its unreliable entities list
- Markets broadly reacted with NASDAQ futures falling and commodities declining, except for copper
Financial markets experienced widespread turbulence on Tuesday as China unveiled a series of retaliatory measures against the United States, including new tariffs on American goods and an antitrust investigation into tech giant Google.
The Chinese government announced tariffs ranging from 10% to 15% on various U.S. products, directly responding to President Donald Trump’s recent implementation of 10% tariffs on Chinese imports. The move affected multiple sectors of the American economy, targeting key exports like energy resources and agricultural equipment.
According to official statements from Beijing, the new measures impose a 15% duty on American coal and liquefied natural gas shipments. Additional 10% tariffs now apply to U.S. crude oil exports, farming equipment, pickup trucks, and vehicles with larger engines.
Cryptocurrency markets responded swiftly to the news, with Bitcoin experiencing a pullback to $98,500. While representing a 2.5% decline, Bitcoin’s performance suggested stronger market resilience compared to smaller cryptocurrencies, which faced more substantial losses.
Trading data revealed that Dogecoin emerged as the biggest decliner among major cryptocurrencies, recording a 5.8% drop. XRP followed this downward trend with a 5.1% decrease. The broader crypto market saw liquidations totaling more than $2.2 billion as traders adjusted their positions.
The market impact became particularly notable given recent developments. Just hours before China’s announcement, cryptocurrency prices had shown signs of recovery. Bitcoin had climbed from $92,000 to $102,000 following President Trump’s decision to pause tariff threats against Mexico and Canada for 30 days.
China’s response extended beyond traditional trade measures. The State Administration for Market Regulation launched an investigation into Google’s market practices, timing the announcement with the implementation of the new U.S. tariffs. The government also expanded its unreliable entities list to include American companies PVH Corp and Illumina.
Traditional financial markets displayed clear reactions to these developments. NASDAQ 100 futures recorded a 1.7% decline during Asian trading hours, though they later recovered slightly to show a 1.2% drop before U.S. markets opened.
The commodity sector experienced broad pressure from the news. Natural gas prices declined by 2%, while crude oil markets saw a 1.74% decrease. Copper stood out as an exception, managing to record a modest 0.35% increase amid the market downturn.
Alternative cryptocurrencies faced their own challenges during this period. Ethereum markets witnessed an 18% decline during Monday’s U.S. trading session, falling to $2,135 in its largest single-day drop since May 2021. This movement erased approximately $600 million in market value before prices stabilized and recovered to $2,881.
The dollar strengthened against major currencies as investors sought safer assets, reflecting typical market behavior during periods of increased economic uncertainty. This movement highlighted the interconnected nature of global financial markets during times of trade tension.
Trading volumes across Asian cryptocurrency exchanges showed marked increases as regional investors responded to the breaking news. Market data indicated elevated activity levels compared to recent weekly averages.
The changes in trade policy affected various sectors of both economies, with energy and agricultural industries facing particular exposure to the new tariffs. Market analysts noted that the measures could influence supply chains and pricing structures across multiple industries.
Early trading patterns suggested that market participants remained cautious, with many traders adjusting their positions to account for potential further developments in the ongoing trade situation.
Recent price movements indicated that cryptocurrency markets increasingly reflect broader economic trends, especially during periods of international economic tension.
Exchange data showed that trading desks experienced higher than usual activity as investors sought to reposition their portfolios in response to the new economic measures.
Stay Ahead of the Market with Benzinga Pro!
Want to trade like a pro? Benzinga Pro gives you the edge you need in today's fast-paced markets. Get real-time news, exclusive insights, and powerful tools trusted by professional traders:
- Breaking market-moving stories before they hit mainstream media
- Live audio squawk for hands-free market updates
- Advanced stock scanner to spot promising trades
- Expert trade ideas and on-demand support
