Trump Reverses Course: China Tariffs Won’t Stay, Even as Crypto Market Crashes

U.S. President Donald Trump made a surprise announcement that his 100% tariffs on China will not remain in place, signaling a potential shift in his hardline trade policy. The statement comes as the global cryptocurrency market plunges by billions of dollars, partly due to escalating U.S.–China trade tensions.

Trump Backs Down on Tariffs, Plans Meeting With Xi Jlnping In an interview with FOX Business, Trump answered “no” when asked whether the China tariffs would stay in effect. He added that he expects Beijing to agree to new terms, which he said would pave the way for a “fair deal.” The president also confirmed he will meet with Chinese President Xi Jlnping in two weeks, despite previously suggesting he was not interested in such a summit. Trump admitted that the 100% import tariffs are not sustainable, but argued they were necessary to negotiate better trade conditions for the United States.

Crypto Market Plummets, Bitcoin Briefly Dips Below $104,000 Trump’s comments came on a day when Bitcoin dropped to a daily low of $103,500, before quickly rebounding to $106,000 following his remarks. The sharp volatility follows last week’s announcement of the tariffs, which triggered the largest liquidation event of 2025 in the crypto market. More than $19 billion was wiped out in a single day as Bitcoin fell sharply from recent highs.

Whales and Miners Intensify Selling Pressure Analytical data shows that much of the current downturn is driven by massive sell-offs from miners and large BTC holders. Over the past week alone, more than 51,000 BTC were transferred to crypto exchanges — one of the largest inflows since last year. Meanwhile, altcoins have seen rising volatility as investors react to macroeconomic uncertainty, including regional bank stress at Western Alliance and Zions Bancorporation, and fears of a potential U.S. government shutdown, which could become the longest in history.

Capital Flows Into Gold and U.S. Bonds Amid growing financial anxiety, investors are shifting capital from risk assets into U.S. Treasury bonds and gold, which continues to hit new all-time highs. While Bitcoin hovers near the crucial $104,000 level, some traders warn of a potential drop toward the psychological $100,000 mark.

According to data from Polymarket, there is currently a 72% probability that BTC will fall below $100,000 before the end of the year.

Summary Trump’s sudden reversal on tariffs may have temporarily calmed global markets, but uncertainty remains high. The crypto market continues to struggle under heavy selling pressure, geopolitical tension, and concerns over U.S. fiscal stability. The upcoming Trump–Xi Jlnping meeting could prove crucial — not only for global trade but also for the next direction of Bitcoin and altcoins.

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