In recent weeks, the US-China Trade War has become increasingly intense. Previous duties as high as 145 percent on imports from China were replaced by potential tariff reductions announced by President Donald Trump.

It is still an economic conflict, which continues to affect global financial markets. They are particularly sensitive to the values of cryptocurrency and safely stored assets.

Key-Takeaways:

• As US-China Trade War affected economic uncertainty, here is what is happening to both traditional and cryptocurrency markets: Bitcoin surges, and traditional assets are mixed.
• The US is pressuring other countries into tariff negotiations, even beginning a process of tariffs on nations like India. Investors have their eyes wide open, waiting to see if economic or monetary policy shifts, including interest rate cuts, will begin to occur.

Recent Developments in the US-China Trade Tensions

At a White House press address, President Trump said that not all of the tariffs on Chinese goods will be taken off. But he said this is not a one-time thing and that substantial reductions will become available.

Chinese officials responded positively. Market hopes that it would be resolved grew after they expressed willingness to resume trade talks.

Political analyst Jostein Hauge commented on the US-China Trade War. China apparently could have an edge in this regard because any goods it exports are mainly high-tech.

In this case, the US-China Trade War intensified when Trump’s administration increased the amount of taxes from 0% to 145% on Chinese imports. Some Chinese products already have duties averaging 245%, which — combined with existing tariffs — are so high that companies can be slapped with tariffs as high as 322%.

The response from China saw a 125% tax on American products. The officials also said they would fight to the end.

China Commerce Ministry has issued warnings to the other countries. But they warned against deals with the US that may do Beijing harm.

With the US-China Trade war, the activity in the cryptocurrency market has been quite prominent. On April 23, 2025, Bitcoin reached its all-time high at $94,220.

The surge was linked to such demand and strong inflows of ETFs by analysts. Daily flows into spot Bitcoin ETFs on Farside Investors was $921 million.

Even by April 21, Bitcoin was past $87,000. It demonstrates its increasing popularity when the world is going through economic uncertainty.

Also among the altcoins, Solana, Cardano, and XRP all had huge price gains in regard to the broader cryptocurrency market capitalization, which crossed $3 trillion. Interestingly, TRUMP token was one of the top performers, which jumped 70% or to $14.56, after the head of its holders was invited to attend a private dinner.

The US-China trade war has received mixed reactions from traditional financial markets. The S&P 500 rose 0.52% over five trading days and the Dow Jones fell 0.89%.

The Russell 2000 advanced 2.9%, and the Nasdaq composite fell 0.44%. In the same period, Gold surged about 3.8% against the US dollar as it was seen as a safe haven.

International Implications of the US-China Trade War

The US-China Trade War is no longer what it used to be, just between the US and China. Now it has international implications. The reports say that the US will utilize tariff talks to coerce other nations. According to Trump, the countries have reportedly reached out to Washington to start negotiations via over 70 countries.

The talk has already begun in Japan with its top tariff negotiator meeting Trump in Washington DC. The US is also setting up trade discussions with South Korea.

India’s Prime Minister Narendra Modi will meet US Vice President JD Vance. If India cannot reach a deal with the Trump administration, it could pay an average duty of 26%.

Now market participants are trying to assess how reduced tariffs would affect the economy. An adviser to Biden commented that exit stemming from any of these deals could lower the import duties, enabling cheaper goods to emerge in the US, easing inflation.

For repeated, President Trump has pushed for interest rate cuts. What may change, since inflation is beginning to turn down, is the Federal Reserve’s current monetary policy.

Those critics charge that Trump’s tariff policies will force businesses and consumers to foot those extra bills. The prospect of job losses and lowered pay saw them warned of.

And some economists think that these measures would shrink the US economy and damage household incomes. Other than that, Trump says tariffs protect jobs, support manufacturing, strengthen national security, and provide government revenue.

Conclusion

The global markets and investment play continue to be navigated by the US-China Trade War. Favorable signs of resolution or escalation, depending on how talks proceed, are watched by the investors. 

It is the impact on crypto markets that illustrates how digital assets bear a new set of financial correlations that are these days drawn to geopolitical and economic moves. What is the effect that this will have on your future investment strategy?