On 11/04/2025, the Customs Tax Committee of China's State Council officially announced an additional tax increase on imported goods from the US - from 84% to 125%. The new tax rate will take effect from 12/04.
This move is a direct response to the US decision, announced on 10/04, to impose a "retaliatory" 125% tax on Chinese exports to the US.
Crypto Market Remains Calm Amid Escalating US-China Trade War
Despite increasing tensions between the world's two largest economies, the cryptocurrency market continues to show significant stability. Investors appear unaffected by the increasingly tense trade conflict.
The cryptocurrency market capitalization remains around 2.5 trillion USD. Bitcoin price remains steady above 81,000 USD after recovering 10% since 09/04, when Trump announced a 90-day tariff pause, except for tariffs on China.
Bitcoin Price Performance. Source: BeInCrypto.According to China's statement, the tax increase follows China's Customs Law, Tariff Law, and International Trade Law. The government reaffirmed its commitment to international rules. They accuse the US of violating global trade rules and call Washington's policy "unilateral bullying".
Notably, China warns they will not retaliate further if the US continues to increase tariffs on Chinese goods, believing US goods have already lost competitiveness in the Chinese market at current tax rates.
"Since US exports to China are no longer competitive in the market at current tax rates, China will not retaliate further if the US continues to increase tariffs on Chinese goods," the statement said.
The tariff dispute is not new. Since 2018, the US and China have imposed retaliatory tariffs on each other. The main affected sectors include agriculture, technology, and energy.
The latest tax increase pushes tariffs to a record 125%. Economists warn this could disrupt global supply chains, increase prices, and put pressure on inflation in both countries.
Bitcoin Miners also feel the impact as Mining Rig prices surge.
China's tax increase sends a strong message about their firm stance in trade negotiations. While the cryptocurrency market remains stable currently, analysts recommend investors monitor upcoming developments - especially any potential US reactions.
If no agreement is reached, the ongoing confrontation could cause broader economic consequences. The world is watching to see whether the trade war will cool down or continue to deepen the divide between the two economic superpowers.
