China Strikes Back: 84% Tariffs on U.S. Goods Sink Bitcoin to $76K

The U.S.-China trade war just escalated in dramatic fashion. In a retaliatory move against newly imposed American tariffs, Beijing announced an 84% blanket tariff on a wide range of U.S. goods—sending shockwaves through global markets and triggering a sharp drop in Bitcoin prices.

The Chinese Ministry of Finance issued a statement condemning the United States’ “unilateral and provocative” tariff hike last week and confirmed the sweeping countermeasures would take effect immediately.

“China firmly opposes protectionism and will defend its economic interests with necessary measures,” the ministry declared.

Market Fallout: Crypto Takes a Hit

Markets reacted swiftly to the escalation. Bitcoin, which had been trading near $82,000 earlier this week, tumbled nearly 7% to $76,000 within hours of the announcement. Analysts attribute the drop to a broader risk-off sentiment sweeping across global markets, as investors flee to safe-haven assets.

“Crypto has increasingly behaved like a high-beta risk asset,” said Dana Li, head of macro research at CoinSight Analytics. “When geopolitical tensions rise and uncertainty spikes, Bitcoin often takes a hit before bouncing back.”

U.S. stock indices also opened lower, with the Nasdaq falling 1.8% and industrial-heavy sectors taking the brunt of the sell-off. Major exporters and tech firms with China exposure were among the worst performers.

Targeted Sectors, Global Ripples

China’s tariff list includes agricultural products, semiconductors, electric vehicles, and rare earth materials—many of which are vital to U.S. supply chains. Experts warn that the steep levies could drive up prices and disrupt cross-border commerce just as inflation was beginning to cool.

“This is a full-scale economic counterstrike,” said Robert Hale, a senior trade policy fellow at the Atlantic Council. “Beijing isn’t just retaliating—they’re strategically hitting sectors that matter both politically and economically to the U.S.”

With both superpowers digging in, fears are mounting over a prolonged and more intense phase of the trade war. While the White House has yet to respond formally, a senior administration official hinted that “all options are on the table.”

Meanwhile, crypto traders are watching closely for signs of stabilization—or further fallout.

“This is not just about trade anymore,” said Li. “It’s about macro uncertainty, investor confidence, and the broader global financial ecosystem. Even Bitcoin isn’t immune.”