China Hits Back with Sweeping Tariffs, Sending Bitcoin and Global Markets Lower
Global markets turned sharply risk-off during European trading hours on Friday after China unveiled sweeping retaliatory tariffs on all U.S. goods, intensifying trade tensions just days after President Trump raised tariffs on Chinese imports to 54%.
The move rattled investor confidence, pushing Bitcoin (BTC) sharply lower. The cryptocurrency, which had climbed to $84,600 earlier in the session, slid by $1,600 to $83,000, according to CoinDesk data. Other major digital assets including Ethereum (ETH), XRP, Solana (SOL), and Dogecoin (DOGE) followed suit, paring earlier gains and trading flat by midday.
The fallout extended to traditional markets, with S&P 500 and Nasdaq futures both falling more than 2% amid growing fears of a full-blown trade war.
“China’s response is not only negative for the U.S., but it’s also impacting the global outlook,” wrote Justin Low, analyst at ForexLive, in a market note. The escalation adds another layer of uncertainty for investors already grappling with rate cut expectations and Friday’s upcoming U.S. nonfarm payroll report.
With tensions rising and markets on edge, traders are bracing for increased volatility heading into the weekend.
