China Raises Tariffs on U.S. Goods to 125%, Pushing Dollar Index Below 100
In a move that further escalates the ongoing trade dispute, China has raised tariffs on U.S. goods to a cumulative 125%, intensifying tensions between the two economic giants.
The U.S. Dollar Index (DXY), which gauges the strength of the U.S. dollar against a basket of global currencies, has fallen below the 100 mark for the first time since April 2022. This decline comes as the index has dropped more than 10% from its recent peak of 110, reaching its lowest level in three years.
Earlier in January, CoinDesk research highlighted that the DXY was following a similar trend to patterns observed during President Trump’s first term. That trend appears to have continued, with investor sentiment now shifting away from U.S. assets. This shift is placing additional downward pressure on the dollar as trade tensions with China continue to deepen.
Just prior to press time, China announced a hike in tariffs on U.S. goods, increasing the total tariff rate from 84% to 125%, signaling a firm and prolonged stance in the escalating trade conflict.
Amid these market shifts, bitcoin (BTC) has shown surprising resilience. Unlike equities, which have been more reactive to market fluctuations, bitcoin continues to trade above $81,000, maintaining its position as a relatively stable asset.
