Chinese tariffs are rising: what does Trump‘s trade war mean for crypto?
The trade relationship between the United States and China is once again under pressure. In early April, the American president announced plans to implement additional import tariffs on Chinese products. China responded firmly, warning it would "fight to the end." This signals a new phase in the trade conflict — one that could have implications for the crypto market.
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What‘s happening between the US and China?
The US government is considering a new series of tariffs on Chinese goods. This move aims to apply economic pressure and protect strategic industries. China, in turn, has made it clear it will not back down easily. Tensions are escalating, which could have global economic consequences.
What does this mean for crypto?
Historically, geopolitical unrest and economic uncertainty tend to lead people to seek alternatives. In the past, when the Chinese yuan lost value — for example, due to monetary policy or as a countermeasure to foreign sanctions — capital often flowed into Bitcoin and other cryptocurrencies.
This is partly because crypto, unlike traditional currencies, knows no borders. It‘s decentralized, globally accessible, and gives people more control over their assets — especially in uncertain times.
Capital flight and the role of crypto
In response to economic pressure, China could opt to weaken its currency. A weaker yuan makes Chinese exports more competitive but also affects citizens' savings. In the past, this sometimes led to capital flight — funds being moved outside of traditional financial systems.
While we offer no guarantees — and certainly no financial advice — we do see a pattern: in times when central banks tighten control or national currencies come under pressure, crypto tends to attract attention. Not as an escape, but as an alternative.
What can you do as a crypto investor?
It‘s always wise to stay informed about global economic developments, especially if you're interested in digital assets. Events between major powers like the US and China often have more impact than they first appear. The situation is still unfolding, but one thing is clear: geopolitical tensions like these increase interest in crypto.
Disclaimer: This is not financial advice. Always do your own research and seek professional guidance.