YEREVAN (CoinChapter.com) — The U.S. government imposed new tariffs on Chinese imports on April 15. The White House released a fact sheet detailing tariffs of up to 245%. These include a 125% reciprocal tariff, a 20% tariff linked to the fentanyl crisis, and Section 301 tariffs ranging from 7.5% to 100%.
The U.S. cited national security and trade imbalance concerns. The fact sheet outlined the risks of over-reliance on Chinese imports. The penalties target products in high-value sectors, including electronics and pharmaceuticals.
This move triggered market reactions across stocks and crypto. Investors responded quickly to rising tensions and the impact of the tariff escalation.
Trade Negotiator Switch Signals Tougher Talks
China appointed Li Chenggang as its new chief trade negotiator. He previously served as assistant commerce minister during the Trump administration. Reuters reported on April 16 that Li is known as a “very intense” negotiator.
The report cited a source from Beijing’s foreign business community. The source described Li’s experience with U.S. officials during earlier trade disputes. His return signals a firm approach to the current round of trade negotiations.
His appointment may affect the direction of U.S.–China tariff talks. However, no official negotiations or timelines have been confirmed yet.
The next U.S. Federal Open Market Committee meeting is set for May 6. Market watchers are focusing on Jerome Powell’s upcoming speech.
Cryptocurrency Markets Experience Heightened Volatility
Notably, the cryptocurrency sector is also feeling the effects of the escalating trade tensions. Trading volumes have surged, with BTC/USD volume increasing by 40% to $28 billion and ETH/USD volume rising by 35% to $15 billion. AI-related tokens, such as SingularityNET (AGIX) and Fetch.AI (FET), have experienced increased volatility, with AGIX dropping by 12% to $0.50 and FET declining by 10% to $0.70 within two hours of the Nvidia export ban announcement.
The intertwined nature of global trade policies and digital asset markets underscores the broader economic implications of the ongoing U.S.–China trade conflict.
Broader Economic Indicators Reflect Strain Post Tariff Announcements
Beyond the tech and crypto sectors, broader economic indicators are signaling strain. The S&P 500 has experienced a significant decline, and the Nasdaq Composite has shed nearly 20% since the start of the year. These declines are largely attributed to the market’s reaction to the newly announced tariffs and the resulting uncertainty.
Federal Reserve Chair Jerome Powell has acknowledged the economic slowdown, noting that “inflation is likely to go up as tariffs find their way and some part of those tariffs come to be paid by the public.” Above all, this statement reflects concerns about the potential for tariffs to contribute to rising consumer prices and further economic challenges.
