Trump Defends 100% China Tariffs as Crypto Markets Plunge Amid Trade Tensions

Crypto markets plunged on Friday, Oct. 17, as renewed U.S.-China trade tensions rattled investors. Bitcoin dropped 5%, adding to a 13% weekly loss, while the total cryptocurrency market capitalization fell 5.75%. The top 20 cryptocurrencies followed suit, each losing roughly 5%, highlighting how sensitive digital assets have become to global political developments.

The downturn coincided with former President Donald Trump reaffirming the controversial 100% tariffs on Chinese imports. While acknowledging the extreme measures are “unsustainable,” Trump insisted they were necessary, placing the blame squarely on China.

“It’s not sustainable, but that’s what the number is,” Trump said in a Friday interview. “They forced me to do that.”

Trump also signaled cautious optimism regarding trade talks with China, confirming he will meet Chinese President Xi Jinping in two weeks during a conference in South Korea. However, the market remains jittery, reflecting concerns that tariff escalations could disrupt global supply chains and worsen economic volatility.

The latest U.S. measures include stricter export controls on critical software and technology, a response to China’s expanded restrictions on rare earth minerals. These minerals are vital to U.S. tech and defense industries. At the same time, China depends heavily on advanced microchips imported from Taiwan, creating a fragile interdependency that could amplify market instability.

Why This Matters:

• Crypto markets are increasingly sensitive to geopolitical tensions, with sharp moves in Bitcoin and altcoins.
• Escalating U.S.-China trade measures could affect multiple sectors, from tech to commodities.
• Investors are seeking safe-haven assets such as gold, U.S. Treasuries, and stablecoins.
• The upcoming Trump-Xi meeting may provide clarity, but uncertainty is likely to persist.

This episode underscores how global politics are no longer a background concern for digital assets—policy decisions, trade conflicts, and geopolitical strategies now directly impact crypto market performance. Traders and investors alike are advised to monitor developments closely, as volatility may continue in the near term.