How Bitcoin Will React if the Trump Tariff War Further Escalates?

The global crypto market is reeling from the latest twist in the Trump tariff war, with Bitcoin and other cryptocurrencies experiencing severe losses. As the US-China trade war accelerates, fears are growing that other nations might get caught in the crossfire, facing increased taxes.

The move has significantly impacted the Bitcoin price and the broader crypto market. The industry is now down by a massive 10%, slipping to $3.73 trillion. BTC , which stayed comparatively steady in this cycle, has faced a stark decline of about 8% in the last 24 hours. As the situation unfolds, all eyes are on Trump’s next move, speculating on more countries’ involvement.

US President Imposes 100% Tariffs on China

In the latest development within the Trump tariff war, the president announced plans to impose a 100% tax on Chinese imports starting next month, alongside export controls on critical software. This move comes as a response to China's recent restrictions on rare earth exports, which Trump criticized as "becoming very hostile" and attempting to "hold the world captive".

He cited China's “extraordinarily aggressive position on trade” as the reason for imposing new tariffs and export controls. Addressing China’s move as "unprecedented" and a "moral disgrace,” he added,

“It has just been learned that China has taken an extraordinarily aggressive position on Trade in sending an extremely hostile letter to the World, stating that they were going to, effective November 1st, 2025, impose large scale Export Controls on virtually every product they make, and some not even made by them."

More Countries to Get Pulled In?

The US tariffs on more than 90 countries took effect in August 2025, as part of his "America First" trade policy. Following President Trump's April announcement of a 10% baseline tax on imports from all countries, with higher rates for "worst offenders," new rates were introduced in August for dozens of nations. The new tariffs imposed by the US vary significantly across countries, with some of the highest rates applied to India at 50%, Brazil at 50%, South Africa at 30%, Vietnam at 20%, Japan at 15%, and South Korea at 15%.

While negotiations are still ongoing with many countries, the latest move has sparked speculation that the President may increase taxes on more countries, further escalating the Trump tariff war.

Bitcoin Cycle to Impact

Usually, the Bitcoin halving cycle is defined by severe bear markets. But this cycle presented a new story, with the cryptocurrency recently hitting a new all-time high at $126k. Experts like Arthur Hayes posited that the traditional four-year market cycle has ended, with no bear markets spotted in the near future. He noted,

“As the four-year anniversary of this fourth cycle is upon us, traders wish to apply the historical pattern and forecast an end to this bull run. They apply this rule without understanding why it worked in the past. And without this historical understanding, they miss why it will fail this time."

However, if the Trump tariff war escalates, the Bitcoin cycle could persist, potentially plummeting the price to severe lows. At present, the coin is trading at $110k, marking a significant decline of 8.7% in a day, 10.5% in a week, and 4% in a month. Earlier today, it hit a monthly low of $108k.