TLDR
- Trump claims the United States is in dialogue with China while introducing customs up to 145% on Chinese import
- China warns other countries against doing business with the United States at Beijing’s expense and threatening countermeasures
- Markets experienced volatility with mixed performance over the warehouse index and cryptocurrencies
- Bitcoin crossed the threshold of $ 87,000 because investors potentially see it as a safe sanctuary from trade voltages
- The United States is reportedly pushing other nations to limit trade in China in exchange for customs exemption
The US and China trade conflict has intensified as President Donald Trump imposes steep tariffs on Chinese imports and reportedly pushes other nations to choose pages. This development has sent ripples through global financial markets, which affects both traditional stock markets and Cryptocurrencies.
President Trump recently stated that China has reached “a number of times” for dialogue. “Yes, we’re talking to China,” Trump told reporters from Oval Office, even suggesting potential direct communication with Chinese President Xi Jinping.
The United States has introduced tariffs up to 145% on Chinese import, while China has retained 125% taxes on US goods. The Trump administration announced that in combination with existing customs duties, fees on some Chinese products could reach as high as 245%.
Global impact and market response
The markets have responded with uncertainty about trade voltages. Last week, the US index showed mixed performance with the S&P 500 rising 0.52%, Dow Jones industrial average falls 0.89%and the Nasdaq composition slid 0.44%.
Cryptocurrency markets showed similar variation. Bitcoin (BTC) published profits and recently broke through the threshold of $ 87,000, reaches $ 87,236. At the same time, other cryptocoirs including ETH, ADA and XRP experienced.
Gold prices increased by about 3.8% against the US dollar last week, which reinforced its status as a traditional access to safe sanctuary during times of financial uncertainty. This movement suggests that investors seek protection against potential market vollatility.
Trump defends his customs strategy and claims on the truth social that “businessmen who criticize tariffs are bad at business.” He depicts himself as “the greatest friend that American capitalism has ever had” and invokes “the golden rule on negotiations and success: he who has the gold makes the rules.”
Diplomatic maneuvers and coalition building
China has taken a fixed attitude towards countries that can adapt to the United States at China’s expense. A spokesman for the Chinese Ministry of Commerce warned:
“Satisfaction does not give peace and compromise does not earn respect.”
Beijing further warned to seek “temporary self-interest at the expense of second-in exchange for so-called exceptions-is like asking a tiger about their skin.” China has promised that “determination take mutual countermeasures” against all party that do business that harms Chinese interests.
The Wall Street Journal reported that the Trump administration is planning to use customs negotiations to press US trading partners to limit their business with China. This strategy includes asking for preventing Chinese companies from setting up operations in their territories to avoid us customs.
In response, President Xi Jinping recently visited Vietnam, Malaysia and Cambodia and signed cooperation agreements and promised to maintain free and open trade. Chinese officials have also worked with counterparts in Japan, South Korea and the European Union.
Trump has temporarily paused customs on most nations for 90 days while focusing on China. Many countries are now trying to negotiate these fees before the suspension expires. Japan has already begun negotiations, and South Korea will start calls this week.
Economic consequences and future prospects
Critics of Trump’s tariffs claim that they will increase the cost of companies and consumers, threaten jobs and reduce wages. They predict that the measures can compress the US economy and household income.
Trump expects customs to protect US jobs, increase domestic manufacturing, strengthen national security and generate state revenue. He claims that they encourage consumers to buy US goods and reduce dependence on foreign imports.
China has expanded its response in addition to traditional tariffs by limiting the number of Hollywood films shown in the country and returning at least two Boeing aircraft intended for Chinese airlines to the United States. Beijing has also added more US companies to their export control list and unreliable unit list.
Countries captured between the US and China are facing difficult choices. While some nations may find China’s economic overthrows appealing, many remain cautious about being flooded with Chinese goods died from US markets due to high tariffs.
Elizabeth Economy from Hoover Institution at Stanford University noted that countries do not “jump on the chance to cooperate with China” despite their outreach efforts. “For many of these countries, even when China is a larger trading partner, the United States is often a much larger export market,” she explained.
The ongoing trade war has disturbed the global supply chains and increased the recession’s fear as companies and governments struggle to navigate the complex and rapidly changing economic landscape. With neither Trump nor XI showing signs of supporting, market uncertainty is likely to remain.
