Is the Trade War Over? Understanding Trump's Latest Statement on China

Just weeks after reigniting one of the fiercest trade confrontations in modern history, U.S. President Donald Trump has suddenly taken a more conciliatory tone. 

Amid growing market anxiety, Trump now says the U.S. tariff on China will be “nowhere near” the 145% figure he previously hinted at, sparking cautious optimism in global markets.

Is the trade war truly winding down, or is this just a strategic pause? With tensions between the U.S. and China simmering for years, especially under Trump’s leadership, any mention of tariffs sends ripples through financial markets—from Wall Street to the ever-volatile world of cryptocurrency.

Trump Tones It Down

During a press conference earlier this week, Trump addressed concerns about his aggressive trade stance by assuring reporters that the proposed tariffs on Chinese imports would be significantly lower than previously stated.

 “The tariff on China will come down substantially, I won’t play hardball,” Trump said.

This marks a sharp pivot from Trump’s April 2 proclamation of “Liberation Day,” when he announced a universal 10% tariff on all imports, with specific levies on goods from China as high as 145%. 

In response, China imposed retaliatory tariffs of up to 125% on U.S. products, escalating fears of a full-scale economic battle between the world’s two largest economies.

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Tariff Talk Rattled Markets — and Crypto

The US-China tariff standoff immediately sent shockwaves through traditional financial markets and also rippled into the crypto space. In early April, Bitcoin saw a brief dip as investors grew nervous about broader market uncertainty. 

The fear was that extended trade conflict could drag down global economic growth, weakening fiat currencies and increasing regulatory scrutiny on digital assets.

However, after Trump’s recent statement suggesting a softer approach, sentiment shifted quickly. Bitcoin rebounded sharply, climbing to $91,000, its highest level since tensions reignited. 

This price surge reflects a growing view that cryptocurrencies, particularly Bitcoin, are becoming safe-haven assets during times of geopolitical uncertainty.

US-China Trade War: A Recap

The U.S.-China trade conflict is nothing new. It escalated dramatically during Trump’s first term in office with multiple rounds of tariffs and retaliatory actions. The rhetoric cooled in the early 2020s, but 2025 saw tensions flare again with Trump’s return to the political spotlight.

On April 2, he once again took aim at China, accusing it of unfair trade practices and announcing harsh tariffs. 

The move was framed as a way to level the playing field, but critics argued that the abrupt policy shift could damage international trade and disrupt economic recovery.

China’s response was swift. Officials in Beijing condemned the U.S. measures and responded with a round of tariffs targeting American exports, particularly in agriculture and technology—two sectors heavily reliant on Chinese markets.

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What This Means for Global Markets

Trump’s decision to ease his rhetoric has already sparked a modest market rally. Stocks in the U.S. and Asia bounced back after the announcement, and commodity prices stabilized.

While it’s too early to declare the trade war over, the shift in tone suggests that both sides may be exploring paths to de-escalation. 

Analysts say Trump’s revised language may be an attempt to calm markets ahead of upcoming political campaigns and reassure American businesses that are worried about cost spikes and supply chain disruptions.

For the crypto market, the implications are more nuanced. Investors now see Bitcoin and other cryptocurrencies as viable hedges against fiat and geopolitical instability. If trade tensions rise again, crypto could once more become a safe haven for those seeking to protect their assets.

FAQ

1. What did Trump say about tariffs on China?

Trump stated that the proposed tariff on China “won’t be anywhere near” 145%, signaling a move away from earlier hardline threats.

2. Why did Trump propose a 145% tariff in the first place?

He announced it as part of a broader “Liberation Day” strategy to impose universal 10% tariffs on imports, citing unfair trade practices by China.

3. How did China respond?

China retaliated with tariffs of up to 125% on U.S. goods, escalating tensions and triggering concern in global financial markets.

4. What impact did the tariff news have on crypto?

Initially, Bitcoin dipped on fears of market instability. But as Trump eased his stance, Bitcoin surged to $91,000, seen as a hedge against fiat volatility.

5. Is the trade war between the US and China over?

Not officially. While Trump’s recent comments suggest a de-escalation, the trade conflict remains unresolved, and future tensions are still possible.