Breaking: Crypto Market Crashes as Trump Imposes 100% Tariff on China

Paul
3 hours ago Updated 1 hour ago
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Major cryptocurrencies including Bitcoin, Ethereum, XRP, Solana, and BNB show price decline amid market selloff.

Highlights

  • Trump declares 100% tariff on China causing a sharp fall in crypto market.
  • Bitcoin, Ethereum and Solana all crash following the Trump's announcement of trade retaliation.
  • Trump’s China tariff could reshape investor confidence in the crypto market.

The crypto market continues to experience a drop after President Donald Trump announced a 100% tariffs on imports out of China. This would take effect beginning from November 1, 2025. The move is a response to Beijing’s aggressive export restrictions. However, it has triggered widespread selling across digital assets and deepened market losses.

Trump’s Tariff Announcement Triggers Fresh Crypto Market Selloff

In a statement posted on social media, Trump said China had taken an “extraordinarily hostile” stance on trade by sending a global letter outlining new export controls. He explained that the measures would affect nearly every product the country produces and even some it does not. Trump called the decision “unheard of in international trade” and “a moral disgrace” in dealings between nations.

Trump confirmed that the United States would retaliate by imposing a 100% tariff on Chinese goods and would apply export controls on critical software. The measures will take effect on November 1, 2025.

Bitcoin price had already reacted to Trump’s earlier tariff warnings, reflecting growing investor anxiety. The confirmation of the threat affected the crypto market. Bitcoin, Ethereum, and Solana all recorded further drops in prices.

Meanwhile, the U.S. president indicated they could begin the new tariff plan earlier if China escalates its actions. “Starting November 1, the United States will impose a 100% tariff on China, over and above any existing tariffs,” Trump wrote.

Nearly $7 Billion Liquidated from Crypto Markets

According to data from Coinglass at the time of writing, nearly $7 billion worth of crypto positions were liquidated in just one hour. The majority of these liquidations (roughly $5.67 billion) came from long positions.

This indicated that most crypto market traders were betting on price increases before the sudden crash. Short positions accounted for about $1.3 billion in liquidations. This showed widespread volatility across both sides of the crypto market. Recently, retaliatory tariffs by Canada concerning U.S. goods sparked a temporary crypto market rebound. This highlights how global trade tensions often influence market sentiment.

The extreme liquidation spike is one of the biggest, hourly wipe in the history of the crypto market. A heavy exchange traffic also followed. Top exchanges, such as Binance, started noticing system stress as the level of trading increased dramatically. Binance claimed that its systems were heavily burdened, which will result in some delays and display bugs. However, it assured users that “funds are SAFU.”

According to TradingView data, prices fell sharply across all major cryptocurrencies. Bitcoin price momentarily dropped to approximately $109,897 and afterwards rebounded above $110,000 whereas

Ethereum price fell more than 11% to trade below $3,900. Solana, BNB and XRP were also hard hit as traders hurried to liquidate their positions in the face of sharp changes in price.

Bitcoin price chart showing sharp drop to near $110,000 after Trump’s tariff announcement.
Bitcoin’s sudden drop to nearly $110,000 highlights market panic after Trump confirmed a 100% tariff on China products.
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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Paul Adedoyin is a crypto journalist with 4+ years experience who provides timely news, in-depth research, and insightful content to inform and empower his audience. His works have been featured on sites such as CryptoMode, CryptoNewsFlash among others. He holds a degree in Geophysics from OAU, Nigeria. When he's not writing, he loves watching soccer and reading educative journals. He can be reached via [email protected]
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.