China Strikes Back with Tariffs and Antitrust Probe as Crypto Market Faces Volatility

• China’s Response: Beijing imposed a 10-15% tariff on U.S. goods and launched an antitrust probe into Google, triggering market turbulence.
• Crypto Market Impact: Bitcoin fell to $91,541, Ethereum plunged nearly 25%, and over $2.2 billion in liquidations occurred on February 3.
• Recovery Signs: Bitcoin surged 4.23% to $99,000 as the U.S. paused tariffs on Canadian goods, boosting investor confidence.

A marketwide cryptocurrency disturbance occurred on February 3, 2025, after China reacted to US tariffs that went into effect. Beijing introduced a 10-15% trade tax on American commerce and simultaneously investigated Google for anti-competitive business practices, which caused worldwide market reactions. 

China’s Retaliation Sparks Market Sell-Off

China’s latest measures are in response to the United States’ 10% tariff on Chinese imports, which took effect on February 4. Beijing’s new tariffs target key U.S. exports, including coal, oil, and agricultural equipment. 

Additionally, China has announced plans for further tariffs on selected American imports starting February 10. The immediate impact on the crypto market was severe, with over $2.2 billion in liquidations recorded on February 3. Nearly a quarter of the top 100 cryptocurrencies experienced declines of 20% or more.

Despite the initial sell-off, Bitcoin’s decline remained less severe compared to Ethereum and several altcoins. The market has started to recover, largely attributed to the temporary pause on U.S. tariffs on Canadian goods. 

Bitcoin has surged by 4.23% in the last 24 hours, reaching $99,000, while Ethereum rebounded 6.8%. Other altcoins also posted notable gains. Analysts attribute this recovery to investor confidence following the trade negotiations between the U.S. and Canada.

Trade War Risks Persist as Global Markets React

The Chinese response to the U.S. actions has been controlled, but economic tensions continue to have a high probability of worsening conditions. The market disturbances affected worldwide financial instruments as NASDAQ 100 futures declined by 1.7% while crude oil dropped by 1.74% together with a 2% decrease in natural gas. 

As stipulated in the agreement, Canada has committed to spending $1.3 billion on border security through expanded helicopter programs and improved technology, together with extra employees for fentanyl trafficking prevention.

Mexico signed an agreement with the United States before U.S. President Trump reached his own accord. President Trump decided to halt Mexican import tariffs when Mexico agreed to send 10,000 members of their security forces to reinforce border defenses.