Markets Shudder as Trade War Fears Return
Key Highlights:
• Trump threatens a “massive tariff hike” after China restricts rare earth exports, putting the APEC meeting with Xi in jeopardy.
• Markets tumble as Bitcoin plunges under $119K, gold surges past $4,000, and global equities flash red.
Yello, Paradisers! The trade war ghost is back. On Friday, President Donald Trump reignited global tension after threatening a “massive increase of tariffs” on Chinese imports in response to Beijing’s new export restrictions on rare earth minerals.
President Trump ignited panic across global markets Friday after threatening a “massive increase” in tariffs on Chinese imports. The outburst followed Beijing’s decision to restrict rare earth exports, reigniting fears of a renewed U.S.-China trade war.
In a fiery Truth Social post, Trump accused China of trying to “hold the world captive” with its dominance over rare earth materials, the metals essential for everything from EV batteries to missiles and semiconductors.
He warned that his administration was considering “many countermeasures” and hinted he might cancel his meeting with President Xi Jinping at the upcoming APEC summit in South Korea.
China’s Move Strikes at the Global Tech Core
Beijing’s new rules require special export licenses for products containing more than 0.1% rare earths, covering both raw materials and processed derivatives.
China controls roughly 70% of global mining and 90% of rare earth processing, giving it immense leverage over the clean energy and defense industries.
“This mirrors Washington’s chip restrictions, it’s economic warfare through minerals,” said George Chen of The Asia Group.
Bitcoin Bleeds as Traders Flee Risk
The fallout was swift. Within minutes of Trump’s post, Bitcoin collapsed below $114,000, extending its week-long decline and wiping out the gains from Monday’s all-time high near $126,000.
Ether, Solana, and XRP followed the drop, while gold spiked over $4,000 as traders fled to safety earlier on Friday.
The contrast was brutal: Bitcoin, often dubbed “digital gold,” fell as real gold reminded the world who still owns the panic trade.
The Geopolitical Domino
Trump’s move risks unraveling months of fragile diplomacy. The APEC meeting was meant to restore trade cooperation, but the threat of “massive tariffs” has once again thrown relations into chaos.
“Some very strange things are happening in China,” Trump said, accusing Beijing of plotting new export bans “on virtually anything else they can think of.”
Analysts fear a tit-for-tat cycle that could devastate tech, auto, and renewable sectors dependent on Chinese supply chains.
“This is an inflection point,” warned Nazak Nikakhtar, former Commerce Department official. “The U.S. and allies must rebuild entire supply chains from mine to magnet, fast.”
What This Means for Crypto
Bitcoin’s retreat underlines what we warned about in our recent MCP YouTube stream, that geopolitical shocks could flip the Fear & Greed Index faster than rate cuts or ETF inflows can rescue sentiment.
Meanwhile, MCP News Private members will get our real-time trading desk insights on how institutions are repositioning in response, and how to stay liquid when volatility strikes.
It’s only $3/month, cheaper than your morning coffee, and unlike caffeine, this alert could save you from panic-selling the next Trump tweet.
