China’s finance ministry raised tariffs on selected US imports to 125% early Friday, matching Washington’s recent escalation and reaffirming a tit-for-tat strategy in the ongoing trade conflict.
The move, just days after Beijing hiked duties to 84%, was accompanied by sharp criticism of the US, with Chinese officials labeling the American measures as “hegemonic” and “bullying.” While China signaled no intent to escalate further, it warned that continued pressure would be “a numbers game” with no practical economic value.
Markets responded with a mixed tone. Bitcoin briefly dipped 0.60% before the announcement, recovered slightly afterward, and ultimately held flat at $81,292.68, down just 0.07% intraday. The muted movement underlined ongoing uncertainty about Bitcoin’s role as a safe-haven asset. While some view it as a store of value during geopolitical strife, others see it behaving like a risk asset, reacting to broader market shifts rather than insulating from them. This indecision echoes patterns seen in previous global tensions, suggesting that Bitcoin’s macro utility remains context-dependent.
In contrast, gold gained 0.35%, continuing its steady rise even after the tariff news broke—reinforcing its status as a traditional hedge against economic friction. US Treasury bonds also drew demand, with 10-year yields falling by 0.12% as investors sought safety, potentially pricing in expectations of slower growth or further policy easing.
Oil, meanwhile, took the steepest hit among major assets, falling 1.02% as markets reassessed global demand forecasts amid the trade tensions. The drop suggests fears that prolonged tariff battles could suppress industrial activity and reduce energy consumption, particularly in export-reliant economies.
The yuan remained largely steady, and Chinese government bonds showed minimal movement, with the benchmark 10-year note inching up just 0.01%. The muted response may indicate that markets expect the People’s Bank of China to maintain currency and bond market stability in the short term.
US equities also reflected broader caution, with the S&P 500 proxy down 0.63% in pre-market trading. Risk-off sentiment remains prevalent as investors digest the potential long-term implications of economic decoupling between the world’s two largest economies.
Elsewhere, Taiwan’s President Lai Ching-te confirmed resumed talks with the US following a recent tariff reduction from 32% to 10%, aiming to secure longer-term protections for the island’s export sectors.
The broader trade narrative suggests we may be approaching either a plateau in tariff retaliation or the beginnings of a more entrenched economic split. While traditional assets continue to behave predictably amid the tension, Bitcoin’s lack of conviction points to a market still wrestling with its identity—caught between its aspirations as a digital gold and its behavior as a speculative tech asset.
As of 3:28 pm UTC on April 11, 2025, Bitcoin is trading at $81,571.44, up 0.25% in the past 24 hours with a market cap of $1.62 trillion and $45.18 billion in daily volume. The total crypto market stands at $2.59 trillion, with Bitcoin dominance at 62.57%.
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