Trump Confirms Trade War With China as Tariffs Slam Bitcoin Mining and Trigger Global Crypto Turmoil

U.S. President Donald Trump has officially confirmed that the United States is in an active trade war with China, following his threat last week to impose a 100% tariff on all Chinese imports.

Speaking to White House reporters, Trump emphasized the strategic importance of tariffs as a measure to safeguard America’s national security

“If we didn’t have tariffs, we would be exposed as being a nothing, we would have no defense.”

Trump’s latest comments came in response to China tightening export controls on rare earth minerals, essential components for computer chips, electric vehicles, and Bitcoin mining hardware.

In a calculated countermeasure, Beijing’s restrictions on minerals like neodymium and dysprosium sent shockwaves through global markets, illustrating how geopolitical maneuvering can reverberate far beyond traditional trade.

Bitcoin: The Biggest Casualty

The crypto market has borne the brunt of this escalating trade war. Last week’s tariff threat triggered a rapid selloff, with Bitcoin plunging from roughly $121,560 to below $103,000 within hours, while Ethereum and major altcoins also saw steep declines.

Across exchanges, hundreds of millions in leveraged positions were liquidated, exposing the vulnerability of digital assets to geopolitical events.

Bitcoin, long hailed as a decentralized “safe haven,” suddenly appeared hostage to global politics, its price swinging in rhythm with high-level trade disputes.

Analysts warn that the disruption of rare earth supplies could slow Bitcoin mining operations worldwide, driving up costs, compressing margins, and potentially threatening network stability if miners reduce hashrate.

U.S. Officials Push Back

U.S. Treasury Secretary Scott Bessent criticized China’s trade tactics, asserting that Beijing’s strategy could ultimately harm its own economy.

“If some in the Chinese government want to slow down the global economy through disappointing actions and through economic coercion, the Chinese economy will be hurt the most—and make no mistake: this is China versus the world.”

He added that the U.S. and its allies would not be commanded or controlled by Beijing. But this doesn't mean that the U.S escaped this war unscathed.

The tariffs have already hit U.S.-based Bitcoin miners hard. Equipment imported from China now faces a 57.6% levy, while hardware from Indonesia, Malaysia, and Thailand carries a 21.6% tariff. High-performance ASIC miners—critical for Bitcoin mining—have become significantly more expensive, squeezing margins for operators who rely on these machines.

Compounding the problem, U.S. Customs and Border Protection has previously seized thousands of imported miners over regulatory compliance issues, highlighting the fragility of the global supply chain supporting digital asset infrastructure. Despite these challenges, major U.S. mining companies have largely remained stateside, resisting speculation that operations would relocate overseas.

Global Market Fallout

The ripple effects have extended well beyond crypto. Asian stocks, including the Nikkei, dropped sharply, while traditional safe havens like gold and the Japanese yen strengthened. Analysts warned that a prolonged disruption in mining hardware supply could reduce Bitcoin’s hashrate, adding volatility to a market long celebrated for its decentralized resilience.

The unfolding U.S.-China trade conflict underscores a broader reality: Bitcoin and the wider crypto ecosystem are not immune to geopolitical risk. As tariffs and export restrictions take hold, miners and investors alike are forced to navigate a rapidly shifting landscape where political decisions, not just code and consensus, can dictate market outcomes.