Will Bitcoin explode when the United States imposes a 245% tax on China?

Bitcoin surged to over $84,600 as tensions between the United States and China reached a new peak after President Trump's administration imposed an accumulation tariff of up to 245% on certain imports from China. Although this figure initially caused confusion, the White House clarified that it includes both current and new taxes, particularly for items such as electric vehicles and medical syringes, which have already been subject to a 100% tax under Biden.

The new tax rate of 145% is applied on top of the current tax rate, targeting sectors deemed important to the economic interests and national security of the United States. The 20% tax specifically targets imported goods related to fentanyl in a move the administration calls a "non-negotiable priority." Total tariff impact: Up to 245% on certain Chinese goods China's retaliation: 125% tariff on US goods Target sectors: Electric vehicles, medical equipment, and high-tech materials Meanwhile, Trump made it clear that the United States will not back down. "The ball is in China's court," he said, implying that unless Beijing moves toward an agreement, tariffs will remain strictly enforced. China responds with tariffs, controlling rare earths China quickly responded by imposing a 125% tariff on U.S. exports and filing a lawsuit with the WTO. They also tightened export controls on rare earth elements such as gallium and germanium - which are crucial for defense, semiconductors, and electric vehicles.

A statement from China's Ministry of Commerce described the actions of the United States as "irrational," warning of "hard countermeasures" if Washington escalates further. These tit-for-tat moves have frightened the market, raising concerns about a broader global recession. Export restrictions may affect: Aerospace and Automotive Supply Chain Semiconductor and Military Clean Energy Production Prospects for BTC: Will Bitcoin rise in price due to safe-haven demand? As traditional markets react to the trade war, Bitcoin (BTC) is drawing attention as a potential hedge against geopolitical risk. BTC is currently trading around $84,612, holding above the main uptrend line and the 50-period EMA at $84,146. Technical summary: Resistance level: $85,500 – A confirmed breakout above this level could create momentum towards $87,400. Support zone: $83,879 – A breakdown below this level risks invalidating the uptrend. RSI (: 53.2 – Neutral to slightly bullish, indicating the potential for further price increases if volume rises. With Bitcoin typically increasing in value during times of macro stress, a sustained breakout above $85,500 could indicate a move towards the highest levels in weeks. The current structure remains bullish, but volume confirmation is key.