Bitcoin stumbles as Trump accuses China of violating trade deal
Bitcoin fell 5% from its Thursday high after President Donald Trump accused China of violating the terms of a tariff truce from earlier this month.
Trump took to Truth Social on Friday to assert that China was breaking the rules of a deal in which the two nations agreed to roll back most tariffs on each other's goods. Without sharing specifics about how China had allegedly reneged on its end of the bargain, Trump wrote on Truth Social, 'China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US.'
Trump went on to hint that he would take action in response. 'So much for being Mr. NICE GUY!,' he wrote.
The renewed tensions between China and the U.S. put pressure on crypto prices on Friday. Bitcoin has tumbled to a weekly low $103,900, after hitting an all-time high of $111,800 just eight days ago. The rest of the crypto market has tumbled as well. XRP is down 4% in the last 24 hours, Solana is down 6%, and Dogecoin is down 10%.
Trump struck a trade deal with China on May 12 in which the U.S. would drop tariffs on Chinese goods, from 145% to just 10%. Meanwhile, China would roll back its retaliatory tariffs on U.S. goods for 90 days while the countries continue to negotiate.
Bitcoin whipsawed earlier this week as a trade court ruled that most of Trump's tariffs on U.S. trading partners were unconstitutional. That decision was quickly reversed by an appeals court that issued a stay on the lower court's decision, temporarily reinstating the levies until the government has a chance to argue its case.
Trump has made his on-again off-again tariff policy a trademark of his second term.
In February, the president introduced 25% tariffs on Mexico and Canada and a 10% tariff on China, accusing the nations of not doing enough to prevent illicit drugs and migrants from entering the U.S. Soon after, Trump paused the tariffs on Mexico and Canada for 30 days, initiating trade negotiations with the two nations. The aggressive policies and rhetoric put pressure on financial markets, leading the S&P 500 to lose 6% within Trump's first few months in office.
The tariff saga hit a turning point on April 2 when Trump announced a plan to introduce 'reciprocal' tariffs as high as 49% on nearly all U.S. trading partners and an additional 10% baseline levy. The plan sent investors running from risky assets like equities and crypto, pushing Bitcoin down 11% and the S&P 500 down 14% between April 2 and April 9, when the tariffs were expected to go into effect.
However, once again, Trump issued a pause—this time for 90 days—on most tariffs except those on China, which were raised to 145%, and the 10% baseline levy.
Since then, financial markets have rebounded significantly with Bitcoin achieving a new all time high and the S&P 500 climbing 14%. The president has struck a deal with the U.K. and other negotiations are ongoing.
This story was originally featured on Fortune.com
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
30 minutes ago
Judge tosses lawsuit over Trump's firing of US African Development Foundation board members
A federal judge has tossed out a lawsuit over President Donald Trump's dismantling of a U.S. federal agency that invests in African small businesses. U.S. District Judge Richard Leon in Washington, D.C., dismissed the case on Tuesday, finding that Trump was acting within his legal authority when he fired the U.S. African Development Foundation's board members in February. In March, the same judge ruled that the administration's removal of most grant money and staff from the congressionally created agency was also legal, as long as the agency was maintained at the minimum level required by law. USADF was created as an independent agency in 1980, and its board members must be confirmed by the U.S. Senate. In 2023, Congress allocated $46 million to the agency to invest in small agricultural and energy infrastructure projects and other economic development initiatives in 22 African countries. On Feb. 19, Trump issued an executive order that said USADF, the U.S. Institute of Peace, the Inter-American Foundation and the Presidio Trust should be scaled back to the minimum presence required by law. At the time, USADF had five of its seven board seats filled. A few days later, an administration official told Ward Brehm that he was fired, and emails were sent to the other board members notifying them that they had also been terminated. Those emails were never received, however, because they were sent to the wrong email addresses. The four board members, believing they still held their posts because they had not been given notice, met in March and passed a resolution appointing Brehm as the president of the board. But Trump had already appointed Pete Marocco as the new chairman of what the administration believed to now be a board of one. Since then, both men have claimed to be the president of the agency, and Brehm filed the lawsuit March 6. Leon said that even though they didn't receive the emails, the four board members were effectively terminated in February, and so they didn't have the authority to appoint Brehm to lead the board. Brehm's attorney, Bradley Girard with Democracy Forward, expressed disappointment with the judge's decision. 'But in our parallel case, Rural Development Innovations v. Marocco, a grantee and two USADF employees have also challenged Marocco's unlawful appointment," Girard wrote in an email. "We are hopeful that the Court will reject the defendants' attempt to ignore the constitutional and statutory requirements for appointing board members to federal agencies.' That lawsuit is still pending before the same judge. In that case, two USADF staffers and a consulting firm based in Zambia that works closely with USADF contend that the Trump administration's efforts to deeply scale back the agency wrongly usurps Congress' powers. They also say Marocco was unlawfully appointed to the board, in part because he was never confirmed by the Senate as required.
Yahoo
30 minutes ago
- Yahoo
Washington AG exploring potential challenge to new federal travel restrictions
Jun. 10—Washington is "taking a careful look" at where it has standing to challenge President Donald Trump's recent proclamation restricting travel from 12 countries, Attorney General Nick Brown said during a news conference Tuesday. "The president says his travel ban is about national security, but this racist order will not make anyone safer," Brown said. The restrictions, Brown said, have stalled medical care, "struck fear" into Afghan refugees who previously aided the United States military and could hinder international students looking to study at American universities. "We are actively looking at ways to challenge this ban, but it will be difficult," Brown said, adding that the Supreme Court has upheld other travel bans in recent years. Trump last Wednesday announced that citizens from 12 countries — Afghanistan, Chad, the Democratic Republic of the Congo, Equatorial Guinea, Eritrea, Haiti, Iran, Libya, Myanmar, Somalia, Sudan and Yemen — would be barred from entering the United States. The president also partially banned citizens from Burundi, Cuba, Laos, Sierra Leone, Togo, Turkmenistan and Venezuela. In a video posted on social media, Trump said the "strength of the restrictions we're applying depends on the threat posed" and said countries could be added or removed from the list. "But we will not allow people who enter our country who wish to do us harm," Trump said. "And nothing will stop us from keeping America safe." The restrictions continue a trend by Trump, who issued several bans on international travel during his first administration. The first, which barred travel from seven majority-Muslim countries, faced swift backlash and was challenged within days by then-Attorney General Bob Ferguson. "I'll always be proud that Washington state was indeed the first state to take on that first travel ban, the first state to take on Donald Trump, and the first state to defeat Donald Trump in court," Ferguson said. "It is a little difficult to wrap my mind around the fact that we are back here again on another travel ban." Ferguson said that Washington will lead other states on standing up against Trump's orders. "And I want all Washingtonians to know that," Ferguson said. "We have a new attorney general, but guess what? The good news is he is as deeply connected to this issue, and as resolved to stand up against it, as we were eight years ago." Among those feeling the impact of the travel ban is Katia Jasmin, founder and executive director of Creole Resources in Spokane. During an interview Tuesday, Jasmin said the inclusion of Haiti caught her by surprise. Jasmin said the ban could have wide-ranging effects on Spokane's Haitian community, including deepening the existing trauma that many have experienced. Jasmin said the ban could also result in family separation, as many permanent residents or citizens still have family abroad — something she knows firsthand. "I have my brother that lives in Haiti, and he comes to see us, and now he won't be able to come and see us," Jasmin said. Katia's brother, Jay, was set to serve as the best man in an upcoming wedding — plans that seem to be in doubt. "My brother won't be able to see us, so I don't know how long we'll have to wait to be able to see him," Jasmin said. The restrictions, Jasmin said, will ultimately have minimal impact on safety. "If you people are scared of gang members coming to the States, I don't know how we are scared of the gang members; they don't have visas, they don't have anything. I don't think a gang member from Haiti will come here to the United States to do anything," Jasmin said. "So whatever they try to say that it's for, the security or stuff, it's not true."
Yahoo
30 minutes ago
- Yahoo
Newsom says Los Angeles rioters will be prosecuted, slams Trump for 'traumatizing our communities'
California Gov. Gavin Newsom, a Democrat, on Tuesday said anti-ICE protesters who engage in violence will be prosecuted to the fullest extent of the law while also criticizing President Donald Trump for a "brazen abuse of power" in sending troops to respond to demonstrations. Newsom said during a news address that 220 people have already been arrested in connection with the Los Angeles riots and that officials are reviewing footage to build additional cases. The governor also thanked individuals who protested peacefully during demonstrations against deportations and ICE raids on migrant workers at local businesses. Peaceful assembly is not what Trump wanted, the governor said, accusing the president of choosing "escalation," "more force" and "theatrics over public safety." Newsom Files Emergency Motion To 'Immediately Block' Trump's Use Of Military To Stop La Riots Newsom and the president have taken jabs at each other in recent days over the Trump administration's move to deploy thousands of National Guard troops and hundreds of active-duty Marines to Los Angeles, with the governor saying it threatens state sovereignty, wastes resources and worsens the situation, while Trump argues that the move was necessary to quell any violence. Read On The Fox News App "These are the men and women trained for foreign combat, not domestic law enforcement," Newsom said Tuesday. "We honor their service. We honor their bravery. But we do not want our streets militarized by our own armed forces. Not in LA, not in California, not anywhere. We're seeing unmarked cars, unmarked cars in school parking lots, kids afraid of attending their own graduation." "Trump is pulling a military dragnet all across Los Angeles, well beyond his stated intent to just go after violent and serious criminals," he continued. "His agents are arresting dishwashers, gardeners, day laborers and seamstresses. That's just weakness. Weakness masquerading as strength. Donald Trump's government isn't protecting our communities. They're traumatizing our communities. And that seems to be the entire point." Newsom had sent a letter on Sunday urging the administration to rescind its deployment of National Guard troops and return them to his command. The state has also filed a lawsuit against the administration over the federal deployment. Hegseth Defends National Guard La Deployments, Says Ice Agents Must Be Protected "Just yesterday, we filed a legal challenge to Donald Trump's reckless deployment of American troops to a major American city," the governor said Tuesday. "Today, we sought an emergency court order to stop the use of the American military to engage in law enforcement activities across Los Angeles." The governor said if some people could be snatched off the streets without a warrant based only on suspicion or skin color, then nobody is safe. "Trump and his loyalists, they thrive on division because it allows them to take more power and exert even more control," he said. "And by the way, Trump, he's not opposed to lawlessness and violence as long as it serves him. What more evidence do we need than January 6th?" Newsom also cited border czar Tom Homan's threat to arrest him for alleged immigration interference, an idea Trump later endorsed, saying Newsom's "primary crime was running for governor because he's done such a bad job." "He's calling for a sitting governor to be arrested for no other reason than, in his own words, for getting elected," Newsom said of Trump. The governor had previously dared Homan to make good on his threat, saying "arrest me" and "come and get me, tough guy." But Homan eventually backed down, admitting that Newsom had not done anything to warrant his arrest. Newsom concluded his remarks on Tuesday by warning that Trump's actions he says threaten state sovereignty and democracy are not exclusive to California. "When Donald Trump sought blanket authority to commandeer the National Guard, he made that order apply to every state in this nation," Newsom said. "This is about all of us. This is about you. California may be first, but it clearly will not end here. Other states are next. Democracy is next. Democracy is under assault before our eyes. This moment we have feared has arrived. He's taking a wrecking ball, a wrecking ball to our Founding Fathers' historic project." "If you exercise your First Amendment rights, please, please do it peacefully," he continued. "I know many of you are feeling deep anxiety, stress and fear, but I want you to know that you are the antidote to that fear and that anxiety. What Donald Trump wants most is your fealty, your silence to be complicit in this moment. Do not give in to him."Original article source: Newsom says Los Angeles rioters will be prosecuted, slams Trump for 'traumatizing our communities'
