Trump announces 100 tariff: A shocking financial ripple hit global markets late Friday after President Donald Trump announced plans for a new 100% tariff on Chinese imports, triggering a dramatic sell-off across the cryptocurrency world. The announcement not only intensified trade tensions between the world’s two largest economies but also exposed the deep leverage and fragility within the digital asset space.
According to data from CoinGlass, the crypto market witnessed total liquidations exceeding $18.28 billion within hours of Trump’s statement. Bitcoin, Ethereum, and Solana were among the hardest-hit digital currencies, each suffering sharp price declines as investors rushed to unwind leveraged positions.
$18 Billion in Crypto Liquidations as Market Panic Spreads
Following Trump’s 100% tariff warning on China, traders scrambled to exit risk-heavy positions, causing widespread market chaos.
CoinGlass data showed that over $5 billion worth of Bitcoin positions were liquidated in just 24 hours, followed by $4 billion in Ether and approximately $2 billion in Solana.
Bitcoin, the largest cryptocurrency by market capitalization, fell nearly 10% in five days. It traded at around $111,616 as of 3:45 p.m. ET — a slight recovery after plunging to $103,000 earlier in the afternoon. Ethereum and Solana saw even sharper declines, reflecting the broader panic across altcoins.
- Ethereum (ETH) dropped from $4,365.63 to $3,742.88, marking a 14.2% fall within hours.
- Solana (SOL) plummeted from $223.10 to $178.72, a nearly 20% decline, signaling how vulnerable mid-cap cryptocurrencies remain to sudden macroeconomic shocks.
This $18 billion liquidation event marks one of the most dramatic single-day corrections in crypto this year.
Stock Markets Join the Downturn
The tremors from the Trump 100% tariff announcement didn’t stop with crypto. U.S. stock markets also faced a heavy sell-off on Friday, with both the Nasdaq and S&P 500 recording their steepest declines in six months.
The dual shock — trade tension and digital asset liquidation — added a new layer of volatility to global markets already reeling from inflationary concerns and slowing corporate earnings. Analysts say investors rushed toward safer assets like gold and the U.S. dollar as uncertainty deepened.
Why the Trump 100% Tariff Matters So Much
The proposed Trump 100% tariff on Chinese goods represents one of the most aggressive trade moves in recent memory. The measure would effectively double import costs for thousands of consumer and technology products shipped from China to the United States.
While Trump argues the tariff is necessary to “protect American manufacturing and jobs,” critics warn that the move could fuel higher consumer prices, disrupt supply chains, and provoke retaliatory action from Beijing.
For the crypto industry, the tariff threat indirectly impacts sentiment. Investors view it as a signal of rising global economic tension — the kind of uncertainty that often sparks liquidity crunches in speculative markets like digital assets.
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From Crypto Skeptic to Digital Asset Advocate
Interestingly, Trump’s administration has had a complicated relationship with the crypto world. When he first took office earlier this year, Trump had dismissed Bitcoin as “based on thin air.” Yet in recent months, he has made a dramatic turnaround.
The president launched his own meme coin, frequently addressed crypto supporters at major conventions, and even promised to build a “strategic crypto reserve” as part of his broader financial reform agenda.
His most crypto-friendly move came last month when he signed an executive order allowing digital assets, including Bitcoin and Ethereum, to be included in 401(k) retirement plans. That announcement pushed Bitcoin to a record high of $124,000 just a week before this tariff-driven crash.
A Perfect Storm: Trade Tensions and Leverage Exposure
The timing of the sell-off couldn’t have been worse. The Trump announces 100 tariff threat landed just as China announced export restrictions on rare earth minerals, escalating an already fragile trade standoff between Washington and Beijing.
These minerals — essential for semiconductor and electric vehicle manufacturing — are critical to the global technology supply chain. Experts believe China’s restrictions were a calculated move to counter Trump’s trade policies, deepening fears of a new trade war that could impact nearly every major industry.
Crypto markets, already fueled by excessive leverage and speculation, became the first casualty. As prices fell, cascading liquidations followed, forcing exchanges to automatically close out billions in leveraged positions — amplifying losses in a domino effect.
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Market Analysts React to Trump’s Tariff Shock
Financial strategists were quick to weigh in on the Trump announces 100 tariff development and its market consequences.
“Crypto investors are extremely sensitive to macroeconomic shocks,” said David Lienkha, chief of markets at YouHodler. “Trump’s tariff announcement triggered an instant flight to safety, exposing how overleveraged the crypto market has become.”
Other analysts noted that while short-term volatility could persist, Trump’s pro-crypto stance might still attract long-term institutional interest. “He has opened the door for mainstream acceptance of digital assets,” said crypto economist Karen Fields. “But the tariff risks remind everyone that political policy can swing sentiment faster than any blockchain update.”
Could This Be a Buying Opportunity?
Despite the massive sell-off, some investors see this crash as a potential buying opportunity. Bitcoin’s quick rebound from $103,000 to above $111,000 suggests that long-term holders still have confidence in the market’s resilience.
However, experts warn that continued trade uncertainty and further escalation between the U.S. and China could limit any sustained recovery. Much depends on whether the Trump administration follows through on its 100% tariff threat or uses it as leverage in upcoming trade negotiations.
The Road Ahead for Global Markets:Trump announces 100 tariff
As of now, markets remain on edge. The Trump announces 100 tariff has not yet been officially implemented, but even the threat has proven powerful enough to shake global confidence. With China hinting at retaliatory measures, investors across sectors — from tech to crypto — are bracing for more turbulence.
The coming weeks will determine whether Trump’s bold tariff stance leads to a new round of trade talks or plunges the global economy into renewed uncertainty. For now, the crypto world has learned yet another hard lesson: political headlines can move markets faster than any blockchain transaction.
