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Trump’s tariffs cause massive crypto losses and panic in markets worldwide.
Photo Credit: Unsplash, lonely blue
Following Donald Trump’s latest tariff on Chinese products, the crypto market in the world is experiencing the largest crash ever recorded. Coinglass reports that the announcement of the new tariff triggered the liquidation of more than 1,5 million crypto traders within the last 24 hours.
White House retaliation triggers global crypto crash
China’s Ministry of Commerce announced on Thursday, 10 October, that exporters from overseas will be required to obtain an export license if their products contain more than 0.1% of rare earth minerals originating in China or are made using technology for rare earth mineral extraction and refining. Chinese officials said that the move was made to “protect national security and interest.”
In response to this statement, the White House announced that it would impose a tariff of 100 percent on all Chinese products, which will take effect either on or before November 1, in retaliation against the Chinese capital Beijing’s new controls on minerals exports. Trump called this an “extremely aggressive letter to world”, and said that the export control would affect nearly every product they produce.
New tariffs on November 1, unless China reconsiders
Wrote Donald Trump: “Based on the facts that China has taken such an unprecedented position and speaking for only the United States of America and not for other Nations that were similarly threatened, beginning November 1st 2025 (or earlier, depending on further actions taken by China) the United States of America, will impose a Tariff of 100 percent on China over and above the Tariffs that they are paying currently.”
It is hard to believe that China could have done such a thing, but they did, and the rest, as they say, is history. “Thank you for paying attention to this issue!” continued Trump.
Major crypto, stock market downward spiral
As a result, the announcement of the new tariffs sent the crypto market into a downward spiral on Saturday, October 11, the largest single-day wipeout ever recorded for crypto currency: according to Coinglass, more than $19.2 billion (€16.5 billion) in leveraged positions were liquidated.
Bitcoin and Ethereum – two major cryptocurrencies – both experienced record liquidations, and suffered massive losses, amid growing fears of a US/China trade war. Crypto investors are scrambling for safer and more stable assets. Bitcoin, by far the largest cryptocurrency in terms of value, has plummeted anywhere between 8 to 12 percent. Ethereum, on other hand, fell by approximately 11 per cent.
Other cryptocurrencies, including XRP and DOGEcoin as well as Ada, have reportedly fallen by 19%, 27%, and 25%, respectively.
Wall Street stocks also took a dive. The S&P 500 dipped 2.71 per cent, the Dow Jones Industrial Average dipped by 878 points, and the NASDAQ Composite dipped by 3.58 per cent by 4:00pm on Friday, October 10. These are the highest single-day losses since April.
Tariffs have thrown recent amicable relations into turmoil.
Trump described Washington’s relations with China in recent months as “very strong”. The White House was surprised by the move. Trump also had a meeting scheduled with Chinese President Xi Jinping for the Asia-Pacific Economic Cooperation (APEC) summit in South Korea two weeks later. However, he claims that there “seems to be no need to do this” unless China changes its restrictions before November 1.
If China reverses their decision by 1 November, then the spot crypto prices may recover but the liquidations remain final.
