Market Reaction to China’s Tariff Announcement
Risk sentiment took a significant downturn during the European trading hours on Friday, following China’s announcement of retaliatory tariffs on all U.S. goods. This move comes in direct response to President Trump’s recent decision to escalate the overall levy on Chinese imports to an alarming 54%.
In the cryptocurrency market, Bitcoin, which holds the title of the leading digital currency by market capitalization, experienced a sharp decline of $1,600, bringing its value down to $83,000. This drop effectively erased the early gains where it had briefly risen to $84,600, as reported by CoinDesk data. Other cryptocurrencies, including XRP, ETH, SOL, and DOGE, similarly reversed their initial upward trends and were trading largely flat by the end of the day.
Additionally, futures contracts linked to the S&P 500 and Nasdaq indices fell by over 2%, reflecting the growing concerns surrounding escalating global trade tensions.
Analyst Justin Low from ForexLive commented in a market update, “China’s response is not only detrimental to the U.S. economy but is also significantly affecting the global economic outlook.”
