China’s finance ministry has raised tariffs on select US imports to 125%, matching the United States’ most recent escalation and signaling continued parity in the trade conflict.

The tariff adjustment, announced early Friday, comes just two days after Beijing raised duties to 84%, following Washington’s move to impose higher import taxes on Chinese goods.

The decision took effect immediately and was accompanied by sharply worded statements from Chinese officials who framed the measures as a defensive response to what they labeled unilateral economic aggression.

The Chinese foreign ministry described the US actions as “hegemonic” and “bullying,” while the commerce ministry called the move a “mistake on top of a mistake.”

Per BBC News, Beijing stated it would not escalate further but warned against continued US tariff pressure, describing the latest hike as contrary to international economic norms.

Beijing’s Commerce Ministry told the BBC that US tariffs have turned into

“A numbers game with no practical significance in economics[…] It will become a joke.”

Cross-Asset Response Reflects Diverging Risk Narratives

The market reaction reflected uncertainty about how deeply the tariff escalation would affect global trade and capital flows. While traditional safe-haven assets received modest inflows, risk assets moved unevenly.

Bitcoin, which had dipped approximately 0.60% before the announcement as broader risk assets sold off, briefly recovered after 9:00 A.M GMT but ultimately remained near flat at $81,292.68 as of press time, down 0.07% intraday.

The mixed response highlights an ongoing debate over Bitcoin’s role as a macro hedge. Some investors treat it as a store of value during geopolitical tension, while others view it as a high-beta asset sensitive to broader market sentiment. The indecision mirrors behavior seen during previous trade disputes, where crypto’s utility as a safe-haven asset remains context-dependent.

In contrast, gold rose steadily, gaining 0.35% over the session. The metal’s upward momentum continued past the announcement, consistent with previous episodes of trade friction. Gold’s price behavior suggested capital rotation out of equities and into hard assets that are less vulnerable to trade volume disruption.

US Treasury bonds also attracted demand. Prices on the 10-year bond climbed by 0.12%, driving yields lower and reflecting investor caution. Falling yields often signal expectations for slower economic growth or future Federal Reserve rate cuts.

The uptick in demand aligns with a broader risk-off sentiment, especially in anticipation of further policy tightening or retaliatory economic measures. Still, it contrasts with recent declines in bond prices along with equities. The move, while modest, indicates a renewal in US bonds as a flight to safety after the sell-off earlier this week.

Oil Declines Sharply, Yuan Static

Oil posted the most notable downside move across assets. Prices fell 1.02% as traders recalibrated demand expectations under the assumption that extended trade disputes could constrain global industrial activity. The move reflects sensitivities to macroeconomic indicators that suggest trade barriers could reduce energy consumption, particularly in manufacturing-heavy regions.

Meanwhile, Chinese bonds mainly remained unchanged. The proxy 10-year Chinese government bond posted a marginal increase of just 0.01%, hinting at either a fully priced-in market or expectations that the People’s Bank of China may intervene to ensure currency stability. Such muted movement implies investors anticipate limited near-term volatility in foreign exchange markets despite the tariff escalation.

The S&P 500 (SPY proxy) slipped 0.63% in pre-market trading, reflecting cautious sentiment and a continued wholesale move out of equities.

Broader Trade Landscape

The tariff increase follows a pattern of reciprocal moves that began with the Trump administration’s sweeping import tax policies. Since the start of the trade confrontation, Beijing has matched Washington’s escalation with near-equal tariff hikes. The cumulative increases have driven both sides’ duties to historically elevated levels, with a stated 125% tariff now becoming the baseline for many products.

Taiwanese President Lai Ching-te separately noted that Taiwan is engaged in early negotiations with Washington after a temporary pause reduced US tariffs on the island’s exports from 32% to a 10% baseline. Per BBC News, Lai stated that his government remains committed to securing favorable outcomes to protect industrial interests.

Whether the tariff ceiling holds or triggers new rounds of retaliation remains uncertain. For now, investors appear divided in their interpretation of what elevated tariffs signal, either an inflection point in trade relations or an entrenched state of economic separation between the world’s two largest economies.

While commodities like gold and bonds continue to absorb geopolitical risk in traditional ways, Bitcoin’s identity straddles both ends of the spectrum. Its lack of clear directional conviction may reflect broader hesitancy to assign it a fixed role in macroeconomic crises, at least until clearer signals emerge from either central banks or geopolitical actors.

Mentioned in this article

Cryptocurrency is becoming a practical payment method in Singapore, driven by tech-savvy youth and increasing transaction volumes.

While adoption grows steadily, challenges like complexity and limited acceptance remain.

According to a Straits Times report published on April 8, ownership rates in Singapore increased to 26% in 2024, up from 24.4% the previous year.

Digital Native Spending vs Traditional Transfer Patterns

The report revealed other interesting usage statistics as well. Among crypto holders, 52% have already utilized digital assets for payments. Additionally, 67% intend to use crypto tokens for future transactions.

In Singapore, younger generations, particularly Gen Z and millennials, are leading cryptocurrency adoption, with around 40% holding crypto.

Usage patterns vary by generation. Over 41% of younger users use crypto for online shopping. Another 36% pay bills with digital currencies, while 27% make in-store purchases.

Older users have different priorities. Among those 45 and above, 43% primarily use crypto for peer-to-peer transfers to family and friends.

Online shopping represents 35.7% of their usage, followed by bill payments at 17.2%.

Despite growing usage, over 60% of respondents find crypto complex. Security concerns affect 60% of users. Limited merchant acceptance frustrates 54% of crypto holders.

Nevertheless, crypto transaction volumes continue to rise in Singapore.

According to blockchain analysis firm Chainalysis, these payments surged to nearly $1 billion in Q2 2024, marking the highest level in two years.

Brands Transforming Crypto from Hype to Utility

While individual adoption continues to accelerate in Singapore, institutional acceptance has increased equally.

Singapore’s crypto adoption has also gained momentum through key business partnerships. The rising transaction volumes have drawn major companies that now lead payment innovation.

Sony’s recent partnership with Crypto.com to integrate USDC payments on its online store marks a milestone in itself.

This is the first time a major consumer electronics brand in Singapore has embraced direct crypto payments.

By enabling shoppers to pay with USDC, a regulated stablecoin tied to the US dollar, Sony is offering a straightforward, secure method for consumers to utilize digital assets for everyday purchases.

The implementation also prioritizes user experience, with Crypto.com Pay simplifyinf the checkout process for digital asset payments.

Sony’s move into the crypto space aligns with its broader Web3 initiatives that include ambitious projects such as the Soneium blockchain developed by its Blockchain Solutions Lab. Singapore’s Playbook in the Global Crypto Adoption Race

Sony’s moves in the country show Singapore’s growing importance, but the country’s crypto development exists in a wider global race.

The UAE now leads worldwide crypto adoption rates with impressive growth, according to a March report from trading company Atmos.

The UAE’s crypto adoption surged 210% in 2025, with an adoption score of 98.4 out of 100. The country boasts the world’s highest ownership rate at 25.3%.

The country is also set to launch its digital Dirham for retail use.

Despite the UAE’s leadership, Singapore maintains its competitive position globally.

According to Atmos, the city-state experienced 150% growth in crypto adoption with nearly 25% of its population owning digital assets.

The United States has also shown fast adoption of the technology.

With 220% growth, America hosts the world’s largest Bitcoin ATM network, benefiting from a more favorable regulatory environment under the current administration.

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