October 17, 2025 — Global crypto markets tumbled on Friday after U.S. President Donald Trump reaffirmed his plan to impose 100% tariffs on Chinese imports, a move he admitted was “unsustainable” but necessary in response to Beijing’s trade policies.
The announcement triggered a wave of risk aversion across financial markets. Bitcoin (BTC) fell 5% in 24 hours, extending its weekly loss to 13%, while the total crypto market capitalization dropped 5.75%. Most of the top 20 cryptocurrencies saw similar declines, reflecting widespread investor uncertainty.
“It’s not sustainable, but that’s what the number is,” Trump said in an interview Friday. “They forced me to do that.”
Despite acknowledging the severity of the tariffs, Trump defended the measure as a necessary response to China’s restrictions on rare earth mineral exports — materials vital to U.S. tech and defense industries. The tariffs are set to take effect November 1, marking the most aggressive escalation in U.S.-China trade tensions in years.
The move follows Beijing’s decision to tighten controls on rare earth exports, which the U.S. views as retaliation against Washington’s technology sanctions. The standoff has strained global supply chains, especially in semiconductors and high-tech manufacturing, as China depends heavily on advanced microchips from Taiwan.
Trump also confirmed plans to meet Chinese President Xi Jinping in South Korea in two weeks, raising hopes for renewed trade dialogue — though markets remain skeptical about a breakthrough.
Crypto and Risk Assets Hit Hard
The tariff escalation sparked a sharp pullback across risk assets. Analysts say the crypto market, known for tracking macroeconomic sentiment, reacted swiftly to the rise in global economic uncertainty.
According to Santiment, over $19 billion in crypto market value was wiped out within hours of the announcement. “A 100% tariff on Chinese imports is a global disruptor,” analysts said, warning of “ripple effects” on growth, inflation, and employment.
Flight to Safety
While crypto and equities fell sharply, gold surged to a new record high of $4,250 per ounce, as investors sought traditional safe-haven assets.
The combination of inflation concerns, slowing global trade, and U.S.–China friction continues to weigh heavily on sentiment — and with Trump’s tariffs still on track for November, analysts warn that volatility in digital assets could intensify further in the weeks ahead.
