Markets Swoon, Bitcoin Nears ‘Death Cross’ as Trump’s Tariff Barrage Targets China
Global markets stumbled Thursday as investors digested a sweeping new round of tariffs unveiled by U.S. President Donald Trump — and waited nervously for China’s next move.
During a Rose Garden announcement on Wednesday, Trump declared the imposition of “reciprocal tariffs” against 180 countries, including some of America’s largest trade partners. The most severe blow landed on China, which now faces a cumulative 54% tariff on its exports to the U.S., the highest rate among all nations targeted.
While the president framed the action as long-overdue economic justice, markets recoiled. Traders braced for potential retaliation from Beijing, a move that could deepen global uncertainty.
“China’s response is now pivotal,” said Robin Brooks, chief economist at the Institute of International Finance. “If they devalue the yuan, it risks unleashing a broader risk-off wave that could hit emerging markets hard and reverberate back to the U.S.”
The yuan slid to a seven-week low of 7 against the dollar, while equity markets across Asia slumped. Japan’s Nikkei fell to an eight-month low, and U.S. futures indicated heavy losses, with the Nasdaq down more than 2%.
Bitcoin wasn’t spared. The cryptocurrency dropped to around $83,300, down from a recent high of $88,000. Analysts noted the 50-day moving average is closing in on a “death cross” below the 200-day average — a bearish technical pattern that could further weigh on sentiment.
Meanwhile, options traders are showing a growing appetite for downside protection, with puts seeing increased demand ahead of the June expiry, according to data from Deribit and Amberdata.
The next move is China’s — and markets around the world are holding their breath.
