U.S. President Donald Trump has revived global trade tensions by threatening tariffs of up to 155% on Chinese goods starting November 1, just as he signed a critical minerals deal with Australia. The announcement triggered immediate ripples across global markets, especially in the cryptocurrency sector.
Trump’s threat to impose tariffs — already starting at 55 % and climbing to 155 % unless a new U.S.–China deal is struck — represents a bold shift in America’s trade strategy.
The move came just after the U.S. and Australia signed an approximate $8.5 billion agreement to secure critical minerals supply chains, with each country investing $1 billion over six months. The deal is designed to reduce Western dependence on China in strategic sectors such as defense, aerospace and electric vehicles.
Markets reacted swiftly: the combined tariff threat and export-control measures announced by Washington triggered sharp sell-offs in equities and crypto positions. According to data, more than $329 million in crypto positions were liquidated within 24 hours. Bitcoin plunged to around $107,800 and Ethereum slipped below $3,900, wiping away recent gains.
Tariff escalation, critical-minerals pact and market crash fears
Prior to this, the U.S. had already imposed a 55 % duty on Chinese imports and announced a 100 % additional tariff from November 1 on sophisticated software exports. From an economic standpoint, if Trump executes this strategy, it could deepen the U.S.–China rift, raise global consumer prices, disrupt industrial supply chains and signal the potential for a broader market shock.
In the crypto space, mining operations dependent on Chinese hardware could face cost inflation or output reductions if tariffs are implemented.
There remains a chance for diplomacy: Trump announced a scheduled meeting with Chinese President Xi Jinping later this month at the APEC summit in South Korea, calling the talks “vital for maintaining a strong U.S.–China relationship.”
