On October 10, 2025, just 30 minutes before Donald Trump’s tweet announcing tariffs on China, a $88 million short order was placed in the crypto market.
SNPNEWS.IN News Update By Gurmail Kamboj: U.S. President Donald Trump announced on October 10, 2025, a 100% tariff on all goods imported from China, effective from November 1, 2025. However, depending on China’s retaliatory actions, this could be implemented earlier. This move has significantly increased the likelihood of reigniting the U.S.-China trade war.
China imposed new export restrictions on rare earth minerals, which are critical for U.S. chips, batteries, and other technological products. Trump called this move “highly aggressive” and stated that the U.S. would also impose export restrictions on “all critical software” to China.
Earlier, in February 2025, Trump had imposed an additional 10% tariff on China. These tariffs were reduced during the summer, but they have now been escalated again. Previously, Trump had imposed tariffs as high as 145%, which had disrupted trade between the two countries.
The trade war has heightened the risk of a recession. Trump has also threatened to cancel a scheduled meeting with Chinese President Xi Jinping.
As a result, both crypto and stock markets experienced massive declines, marking the largest crash of 2025. Within moments of Trump’s tweet on October 10, the stock and crypto markets crumbled like a house of cards.
The tariff announcement triggered a “flash crash” in the crypto market, resulting in the largest liquidation in history, with over $19 billion in positions wiped out. This affected 1.6 million traders, and the total market cap dropped by $380 billion. Within one hour of the announcement, $7 billion in liquidations occurred.
The stock market also saw a massive sell-off, marking the largest single-day decline since April. Approximately $2 trillion in U.S. stock value was erased. The tech and chip sectors (e.g., Nvidia) suffered the most, as supply chains are expected to be disrupted due to China’s restrictions on rare earth minerals.