U.S.-China Trade War Escalates, Rattling Rare Earth and Crypto Markets

The trade conflict between Washington and Beijing has entered a volatile new phase, with President TRUMP confirming the imposition of a 100% tariff on Chinese goods effective November 1. The move directly targets China's restrictions on rare earth mineral exports, a critical component in technology and defense industries.

Market Optimism for a diplomatic resolution evaporated after Trump's hardened stance, despite earlier praise for Chinese President Xi Jinping. Beijing retaliated with sanctions on U.S. subsidiaries of a South Korean firm and halted soybean imports, signaling a rapid deterioration in relations.

China's Commerce Ministry accused the U.S. of fueling 'unnecessary panic' over rare earth controls, asserting the measures are for national security purposes. The escalating tensions threaten to disrupt global supply chains, with potential ripple effects across cryptocurrency markets as investors seek alternative assets amid growing economic uncertainty.