Bitcoin Drops to $83K After China Imposes Sweeping 34% Tariff on U.S. Goods

China’s Retaliation Sparks Market Jitters, Sends Bitcoin Back Below $84K

Investor nerves frayed on Friday as China retaliated with sweeping tariffs on all U.S. goods, triggering a wave of selling across both traditional and crypto markets during European trading hours.

The tit-for-tat response follows President Trump’s midweek tariff escalation, which raised duties on Chinese imports to 54%. In a swift market reaction, Bitcoin (BTC) erased early session gains, plunging from $84,600 to $83,000 in under an hour, according to CoinDesk data. Major altcoins including ETH, XRP, SOL, and DOGE also lost steam, drifting flat after brief rallies.

U.S. equity futures weren’t spared either. S&P 500 and Nasdaq futures both dropped over 2%, reflecting deepening concerns about the global economic fallout from escalating trade hostilities.

“The market is beginning to price in the broader implications of a prolonged trade war,” said Justin Low of ForexLive. “China’s blanket response amplifies uncertainty not just for the U.S., but for the global economy.”

With volatility on the rise and the U.S. jobs report due later in the day, traders are preparing for more swings in both crypto and equities before the week closes out.