Key Takeaways
- China imposed a 34% tariff on U.S. imports, escalating trade tensions.
- Bitcoin fell 3% to under $82,000 following the announcement.
- U.S. Bitcoin miners could face rising costs due to tariffs on Chinese mining equipment.
China announced a 34% tariff on all U.S. imports starting April 10, escalating the ongoing trade dispute with the United States.
The news triggered a sharp reaction in markets, with Bitcoin falling 3% on April 4, dipping from $84,600 to below $82,000.
U.S. tariff actions
The announcement follows the U.S.’s own tariff actions, including a 34% “Reciprocal Tariff” imposed by President Trump on top of two earlier phases totaling 20%.
China has criticized the U.S. move as violating World Trade Organization rules, calling it…
… a typical act of unilateral hegemony.
Market reactions
Bitcoin traders reacted swiftly.
The Long/Short ratio for Bitcoin dropped below 1, indicating short positions were becoming dominant amid heightened investor uncertainty.
Broader financial markets also responded, with the S&P 500 falling 10 points and the Dow Jones Industrial Average slipping by 600 points.
Impact on Bitcoin mining
The tariff may have particular consequences for Bitcoin mining in the U.S. Companies rely heavily on ASIC machines manufactured in China, primarily by Bitmain.
A 34% tariff on these imports could raise equipment costs, squeezing already thin margins for American miners.
Commentary on the trade war
The Kobeissi Letter commented:
This is the ‘Third World War’ of the trade war.
Historical context
While Bitcoin has sometimes been viewed as a hedge during economic instability, past trade disputes—like the 2018–2019 U.S.-China standoff—saw similar short-term price declines.
Analysts suggest the long-term impact will depend on broader macroeconomic fallout from prolonged tariff escalation.
