Key Insights:
- China has imposed retaliatory tariffs on U.S. imports, escalating trade tensions.
- The Bitcoin (BTC) price and Nasdaq futures saw significant declines while the dollar gained strength as a safe haven.
Bitcoin (BTC) and Nasdaq futures experienced renewed selling pressure during Asia’s trading hours on Tuesday, following China’s imposition of retaliatory tariffs against the United States.
In addition, China has launched an antitrust investigation into Google and has moved clothing manufacturer PVH Corp and biotech firm Illumina to its unreliable entity list.
Beijing has introduced a 15% duty on U.S. coal and LNG, as well as a 10% tax on crude oil, agricultural machinery, pickup trucks, and large-engine vehicles. This move follows the implementation of U.S. President Donald Trump’s new 10% tariffs on Chinese goods.
On Monday, Trump agreed to a 30-day suspension of his tariff threats against Mexico and Canada, providing a temporary boost to BTC, which saw its price rebound from nearly $92,000 to over $102,000, fueled by hopes that the trade conflict would be resolved soon.
However, China’s recent actions have disrupted that recovery, causing BTC to dip to approximately $98,500 as of the latest reports. The Nasdaq futures have also declined by 0.6%, and the dollar index is benefiting from increased demand for safe-haven assets.
