On Friday, former U.S. President Donald Trump declared a sweeping 100% tariff on Chinese goods, a move that significantly impacted global markets and sent Bitcoin (BTC) prices falling beneath the $110,000 mark.
According to Trump’s announcement on Truth Social, the tariffs are a direct reaction to China’s plan to enforce broad export restrictions on essential commodities, particularly rare earth minerals. These minerals are critical for manufacturing semiconductors and advanced electronic components. Trump highlighted the severity of the situation, stating, “It has just been learned that China has taken an extraordinarily aggressive position on Trade in sending an extremely hostile letter to the World, stating that they were going to, effective November 1, 2025, impose large-scale Export Controls on virtually every product they make.”
This is not the first time tariffs have rattled crypto markets. Earlier tariff announcements from Trump in April had already raised concerns about potential economic slowdowns, contributing to volatility across digital assets.
The significance of rare earth elements in the semiconductor supply chain cannot be overstated. These materials play a vital role in producing computer chips, which power not only everyday electronics but also the infrastructure behind artificial intelligence, high-performance computing, and cryptocurrency mining. Any disruption to the availability of these elements threatens to hinder hardware production worldwide.
The newly announced tariffs form part of a larger strategy by the U.S. government to reduce dependency on Chinese manufacturing and technology. This approach includes tighter restrictions on Chinese tech exports and investment, aiming to protect domestic industries and national security interests.
Crypto markets responded sharply to the tariff news. Alongside Bitcoin’s approximately 12% decline, Ethereum (ETH) and Solana (SOL) also suffered losses, dropping 12% and 14% respectively. Overall, the total global crypto market capitalization has decreased by nearly 11.8% over the past 24 hours, bringing it down to $3.64 trillion at the time of reporting.
Market watchers are closely monitoring this evolving situation as the consequences of escalating U.S.-China trade tensions ripple through both traditional and digital financial markets.
Note: This is a developing story. Additional updates will be provided as more information becomes available.
