Bitcoin Falls 2.5% as China Retaliates with Tariffs and Investigates Google

• China hits back as Trump’s 10% tariffs take effect, Reigniting Trade War Fears.
• China's competition watchdog says it has launched an investigation into Google.
• Trump’s Tariff Tactics: A Power Play Beyond Economics.
• Trade Wars Aren’t New: The U.S. and China’s Ongoing Economic Battles.

Bitcoin experienced renewed selling pressure during Asia’s trading session on Tuesday after China retaliated against the U.S. with fresh tariffs.

Beijing’s latest measures include a 15% tariff on U.S. coal and liquefied natural gas (LNG) and a 10% duty on crude oil, agricultural machinery, pickup trucks, and large-engine vehicles. These actions come in response to U.S. President Donald Trump’s newly implemented 10% tariffs on Chinese imports.

In its announcement of the retaliatory tariffs, China's Ministry of Finance criticized the Trump administration for violating international trade regulations.

"The US's unilateral imposition of tariffs seriously violates the rules of the World Trade Organization. It is not only unhelpful in solving its own problems, but also undermines the normal economic and trade cooperation between China and the US.", said China’s Ministry of Finance in a statement.

China's announcement highlights Beijing's readiness to retaliate in kind against U.S. tariffs, catching some analysts off guard.

However, unlike the broad U.S. tariffs that apply to all Chinese imports, China's countermeasures focus on specific product categories.

In addition to the tariffs, China launched an antitrust investigation into Google and placed clothing firm PVH Corp and biotechnology company Illumina on its unreliable entities list, signaling escalating tensions.

China’s State Administration for Market Regulation said in a statement that “Google is suspected of violating the Anti-Monopoly Law, and the State Administration for Market Regulation has decided to open a case for investigation in accordance with the law.

Bitcoin had recently rebounded from $92,000 to over $102,000 after Trump agreed to a 30-day delay on tariff hikes targeting Mexico and Canada on Monday, temporarily easing trade war concerns and boosting investor sentiment.

However, China's latest countermeasures have reversed part of that recovery, with BTC sliding back to $98,500 at press time.

With tensions between the world’s two largest economies escalating, market participants remain cautious, keeping a close watch on further developments.

Trump’s Tariff Strategy: More Than Just Economics

Donald Trump has long championed tariffs, famously calling them "the most beautiful word in the dictionary." He views them as a tool to bring jobs back to the U.S., boost tax revenue, and address border-related challenges.

Beyond economic motives, Trump believes that U.S. trading partners—including Western allies—have exploited American trade policies, and he sees tariffs as a way to level the playing field. China, in particular, has been a frequent target, with Trump often accusing the country of unfair trade practices.

However, this time, Trump’s tariff strategy extends beyond economics. He claims the measures are also aimed at combating the "scourge of fentanyl," a deadly opioid responsible for tens of thousands of American deaths annually. His administration argues that China supplies the chemicals used to produce fentanyl, while Mexican cartels manufacture and traffic it, with Canada also playing a role in its distribution.

By imposing tariffs, Trump aims to exert pressure on China and its trading partners, using economic leverage to tackle both trade imbalances and the ongoing opioid crisis.

China and the U.S. have clashed over trade in the past

The economic rivalry between the United States and China escalated into a full-scale tariff conflict during Donald Trump’s presidency in 2018. As part of his “America First” policy, Trump aggressively levied tariffs on foreign imports, particularly targeting Chinese goods. This led to a massive trade dispute, with Beijing retaliating in kind, imposing its own tariffs on American products.

When Joe Biden took office, he largely maintained Trump’s trade policies, even expanding some tariffs. However, instead of broad-based duties, his administration focused on strategic industries, particularly semiconductors and electric vehicles, tightening trade restrictions on China’s high-tech sector.

Despite the ongoing friction, economic ties between the U.S. and China remain strong. Analysts continue to emphasize that their trade relationship is among the most influential and impactful in the world, shaping global markets and economic stability.