Trump confirmed that the US is in the active phase of the trade war with China

US President Donald Trump reiterated that the country is in the active phase of its trade war with China. This statement came after his threat to impose 100% tariffs on all Chinese imports, which caused a widespread stir in both economic circles and among investors.

The US-China Trade War: Facts and Consequences

When asked by reporters whether the US was preparing for a protracted trade war with China, Trump replied, "Well, we're already in one." He emphasized that the imposition of tariffs is an important measure to ensure America's national security. "If we didn't have tariffs, we would be exposed as nothing, we wouldn't have any protection," the president added.

Trump's words triggered a sharp decline in the cryptocurrency market. On January 10, following his social media post threatening tariffs, the price of Bitcoin fell from $121,500 to below $103,000 in just a few hours. This highlights how political decisions can impact financial markets.

Trump's Tightening of Controls and Its Consequences

Trump announced his intention to impose a 100% tariff on Chinese goods after China tightened export controls on rare earth minerals, which are essential for computer chip production. These minerals play a key role in high technology, and a shortage could negatively impact manufacturing in the US.

Despite the initial shock caused by Trump's statements, the cryptocurrency market appears to have digested this information and reacted with philosophical calm. This suggests that investors are becoming more resilient to political risk.

Expert Opinion

On October 15, US Treasury Secretary Scott Bessent criticized China's trade tactics, stating that its actions could backfire. "If some in the Chinese government want to slow the global economy through discouraging actions and economic restraint, the Chinese economy will suffer the most," he noted. Bessent added that "we and our allies will not be commanded by a group of bureaucrats from Beijing."

Impact on Mining and Technology

Trump's tariffs have also created serious problems for American miners, who face high tariffs on the purchase of ASIC Bitcoin miners. Tariffs currently stand at 57.6% on Chinese-made equipment and 21.6% on devices from Indonesia, Malaysia, and Thailand. This significantly increases mining costs and could reduce the competitiveness of American companies in this field.

In Conclusion

Thus, the trade war between the US and China continues to escalate, and its effects are felt not only in the economy but also in financial markets. Trump's announcements regarding tariffs and tightened controls on China underscore the importance of this topic for the future of the global economy. Investors and experts continue to closely monitor developments, recognizing that each new measure could have a significant impact on the market and economic stability.