The White House just took the U.S.-China trade war to the next level—and markets weren’t having it. On Tuesday, tariffs on Chinese imports skyrocketed to 104%, sending stocks and crypto into the red once again.

Trump Doubles Down on China Tariffs

What started as a 34% hike turned into a full-blown 50% boost, bringing the total tariff rate to 104%. The announcement came through CNBC and was quickly confirmed by the White House.

Trump’s team made it clear this was about holding firm, even as China refuses to ease its countermeasures.

“President Trump has a spine of steel, and he will not break,” said Press Secretary Karoline Leavitt.
“Countries like China… are doubling down on their mistreatment of American workers.”

Wall Street Drops—and Crypto Follows

Markets felt the pressure instantly:

• Nasdaq: down over 2%
  
• S&P 500 & Dow: down more than 1%
  
• Bitcoin: dropped 3.15%, sliding below key support levels
  

Worries about a potential recession are picking up steam. Trump, speaking to reporters aboard Air Force One, said he’s not trying to hurt markets—but insisted this is the cost of fixing trade imbalances.

“I don’t want anything to go down,” Trump said, “but sometimes you have to take medicine to fix something.”

Crypto Might Still Come Out on Top

Despite the rough day, Binance CEO Richard Teng sees a silver lining for the crypto crowd.

“This could accelerate interest in crypto as a non-sovereign store of value,” Teng posted on X.
“Long-term holders still view Bitcoin as a resilient hedge during economic stress.”

In other words, while BTC is down for now, the trade war could end up fueling adoption as people lose faith in traditional systems.

As tensions between Washington and Beijing escalate, the market will be watching closely. And in the crypto world, some believe this might just be the beginning of a new wave of relevance for decentralized finance.