Trump's tariff war escalates! Bitcoin price big dump 15%, Ethereum falls 3.5%

U.S. President Trump confirmed a full-scale trade war against China, announcing a 100% tariff measure and calling tariffs the “primary defense tool for national security,” triggering a global market dumping wave, with Bitcoin's price crashing from $121,560 to $111,000, and Ethereum plunging 3.5% in a single day to $3,978.

Trump confirms the US-China trade war, tariffs become a national security weapon

When a White House reporter asked whether the United States was prepared to engage in a “prolonged trade war” with China, President Trump responded unequivocally: “Well, we are currently in a trade war.” This statement formally confirms that the comprehensive confrontation between the world’s two largest economies has entered a heated phase.

Trump posted a threatening message on social media last week, announcing that starting from November 1, 2025, a 100% tariff will be imposed on all products imported from China. This measure is a direct response to China's actions to strengthen export controls on rare earth minerals. Rare earth minerals are key materials for manufacturing computer chips, and China's export restrictions are seen as a strategic blow to the U.S. technology industry.

In his latest public statement, Trump further elevated tariff policy to the level of national security. He made it clear that tariffs are “the main defense tool of national security” and emphasized that “without tariffs, we have no national security.” This linking of economic policy with national security suggests that Trump's tariff war may be more enduring and comprehensive than expected, serving not only as a trade protection measure but also as a strategic national security arrangement.

U.S. Treasury Secretary Scott Bessenet joined the criticism of China on Wednesday. He harshly criticized China's trade strategy, warning that if China does not ease its export controls, its actions will backfire: “If some in the Chinese government want to slow global economic growth through disappointing actions and economic coercion, then the Chinese economy will suffer the most severe damage. This is China's confrontation with the world.” Bessenet bluntly stated: “We and our allies will not be directed or controlled by a group of bureaucrats in Beijing.”

The tariff war not only affects traditional industries but also directly impacts the cryptocurrency mining industry. Currently, the tariff on ASIC Bitcoin miners from China is as high as 57.6%, while miners from Indonesia, Malaysia, and Thailand also face a 21.6% tariff, significantly increasing the operating costs for American miners. Last year, there was an incident where U.S. Customs and Border Protection seized thousands of Bitcoin mining machines, citing that these devices were considered illegal imported radio frequency equipment.

Trump's tariff war expands to a comprehensive geopolitical layout

Trump's latest statement not only focuses on the Sino-U.S. trade dispute but also expands the tariff strategy to a broader geopolitical landscape. At a press conference, Trump announced that India has committed to stop purchasing Russian oil after the trade war ends. This commitment shows that the U.S. is using trade negotiations as leverage to reshape global energy supply chains and ally relationships.

India has always been one of the main buyers of Russian oil, especially after Western countries imposed sanctions on Russia, India significantly increased its imports of Russian crude oil. Trump successfully persuaded India to change its stance, which not only weakened Russia's economic lifeline but also demonstrated the influence of the United States in the global trade system. This strategy of combining trade policy with geopolitical goals shows that Trump's tariff war ambitions far exceed simple trade balance.

When discussing the situation in Ukraine, Trump stated that the deep animosity between the leaders of Ukraine and Russia is obstructing the peace process. He revealed that Washington is assessing options for a possible new offensive by Ukraine, suggesting that the United States may increase military support for Ukraine. This statement raises the risk of escalation in regional conflicts, further intensifying uncertainty in global markets.

Trump also announced that he would personally oversee the legal proceedings related to tariffs. He clearly stated, “I will go to the Supreme Court to oversee the tariff cases.” This rare declaration demonstrates Trump's high regard for tariff policy and his determination to eliminate any legal obstacles that may hinder the implementation of tariffs. This level of direct presidential involvement sends a strong signal to the market that tariff policy is irreversible.

Bitcoin price crash, mainstream coins collectively bleeding

(Source: Trading View)

Trump's series of hardline statements hit the crypto market like a bombshell. Following these remarks, investors rushed to withdraw from risk assets, leading to a severe dumping of cryptocurrencies. According to the latest market data, the price of Bitcoin fell by 1.47% to $111,000 within 24 hours. Although the daily drop seems moderate, when calculated from last Friday's high of $121,560, the price of Bitcoin has actually plummeted by more than 9%, evaporating hundreds of billions of dollars in market value.

Ethereum has suffered a more severe blow, plunging 3.5% in a single day to $3,978. As the second-largest cryptocurrency by market capitalization, Ethereum's significant drop reflects investors' pessimistic outlook on the overall market. Technical analysis shows that Ethereum has fallen below several key moving averages, and if it cannot hold the psychological support level of $3,900, it may trigger further dumping pressure.

The performance of other mainstream coins is similarly bleak. BNB has fallen by 4.4% in the past 24 hours, becoming one of the tokens with the largest decline among mainstream coins. As the platform coin of a major global exchange, the significant drop in BNB indicates that trading activity may be shrinking, and investors are reducing their risk exposure. Solana has dropped by 2.5%, and its relatively resilient performance may be related to the ongoing development of its ecosystem, but the overall trend remains bearish.

It is worth noting that the characteristics of this market decline are comprehensiveness and synchrony. Whether it is mainstream coins like Bitcoin or emerging public chain tokens such as BNB and Solana, they cannot withstand the dumping pressure. This high correlation indicates that the panic sentiment triggered by Trump's tariff war has spread throughout the entire cryptocurrency market, and investors are indiscriminately selling off risk assets.

According to CoinGecko data, the entire cryptocurrency market has evaporated hundreds of billions of dollars in market value in the past 24 hours. Although trading volume has increased, it is mainly driven by panic selling rather than active buying. Market sentiment indicators show an increase in the fear index, indicating that investors are cautious about the short-term outlook.

The Long-term Impact of Trump's Tariff War and Investment Strategy Adjustments

The impact of Trump's tariff war on the cryptocurrency industry is not limited to short-term price fluctuations, but may also have far-reaching effects on the infrastructure and development trajectory of the entire industry. For Bitcoin miners, high tariffs directly increase the procurement costs of mining machines. The 57.6% tariff on Chinese-made mining machines and the 21.6% tariff on Southeast Asian mining machines significantly raise capital expenditures for American miners, squeezing profit margins.

Despite facing these challenges, large Bitcoin mining companies in the United States have not moved their operations overseas as some analysts had expected. This choice reflects their confidence in the long-term policy environment in the United States and their anticipation of the opportunities that may arise after the global supply chain reorganization. However, small and medium-sized miners may face greater pressure, and some operators may be forced to exit the market, leading to further concentration of mining power.

From a broader perspective, the escalating global economic uncertainty due to Trump's tariff war may change investors' positioning perception of cryptocurrencies. The high correlation of Bitcoin prices with traditional risk assets challenges its narrative as “digital gold” and a safe-haven asset. If the trade war continues to escalate, investors may reassess the role of cryptocurrencies in their portfolios.

On the other hand, in the long term, geopolitical tensions and the uncertainty of monetary policy may also strengthen the appeal of cryptocurrencies as alternatives to sovereign currencies. If trade wars lead to further fragmentation of global supply chains, decentralized digital assets may find new application scenarios in cross-border payments and value storage.

For investors, the current environment demands more prudent risk management strategies. Closely monitoring the developments of Trump's tariff war, China's countermeasures, and changes in global economic data will be key to grasping the market rhythm. Until uncertainty is resolved, maintaining a moderate cash position and diversified investments may be a more prudent choice.