Traders Brace for Impact as Tariff War Escalates, Bitcoin Under $77,000

Global financial markets opened the week in turmoil as Asian stocks tumbled early Monday following renewed tensions in the ongoing trade battle between the United States and China. Bitcoin dropped below $77,000 during the early hours in Asia, reflecting the nervous sentiment across multiple asset classes.

Stock exchanges across East Asia saw sharp declines after China responded to US tariffs with a new round of duties on American goods. Beijing announced a 34% tariff on all US imports starting April 10. The news broke after the markets had closed on Friday, leaving traders to react when trading resumed on Monday.

Sometimes you have to take medicine to fix something.

Losses were severe across key indices. The Hang Seng Index in Hong Kong fell over 8% in the morning session. Shanghai’s SSE Composite dropped 7%, and Taiwan’s TAIEX slipped by 9%. Technology companies bore the brunt of the sell-off. Alibaba shares in Hong Kong plunged 12%, while Tencent lost 9%. In Taipei, TSMC shares slid 10% just minutes after opening. The sharp move triggered the local exchange’s price variation limit, halting further movement in either direction.

US equity futures also pointed to further declines, suggesting Wall Street would open lower. Market participants blamed the continued escalation of tariffs between Washington and Beijing. The financial strain is mounting as investors weigh the possible economic damage from trade barriers.

President Donald Trump, speaking to reporters on Air Force One, said, “Sometimes you have to take medicine to fix something.” He rejected the idea that the current sell-off was intentional and said he had tried to engage other world leaders over the weekend. “They’re dying to make a deal,” he said.

Despite rising global concerns, the White House maintains that US consumers will not feel the pressure of higher import duties. Kevin Hassett, who heads the White House National Economic Council, told ABC’s This Week that over 50 countries had reached out to the administration to start trade talks. “Because they understand that they bear a lot of the tariffs,” he said.

Treasury Secretary Scott Bessent confirmed the outreach during an interview on NBC’s Meet the Press. However, he noted that the final call on whether talks move forward lies with Trump. “I think that’s a decision for President Trump,” he said. “At this moment he’s created maximum leverage for himself… I think we’re going to have to see what the countries offer, and whether it’s believable.”

Investors across the globe remain on edge as they try to gauge whether diplomatic efforts will ease tensions or whether the current policy path will continue to rattle markets.

At time of writing Bitcoin is trading at $76,968, down 7.6% in the last 24 hours. Ethereum and XRP, the second and third largest cryptocurrency, are doing even worse. They have lost 14.7% and 16.8% over the last 24 hours as per CoinMarketCap data.