China’s US Tariff War Could Push Ethereum to $2,200-$2,400?

Mechanism Capital partner Andrew Kang has predicted that if China really launches a trade war against the US, Ethereum will fall back to the $2,200-2,400 range.

Mechanism Capital partner Andrew Kang has predicted that if China really launches a trade war against the US, Ethereum will fall back to the $2,200-2,400 range.

The recent announcement by China’s Tariff Commission that tariffs will be imposed on some imported goods originating from the US, effective February 10, 2025, has sparked concerns among traders. As per the announcement, a 15% tariff will be imposed on coal and liquefied natural gas, while a 10% tariff will be imposed on crude oil, agricultural machinery, large-displacement cars, and pickup trucks.

This move comes in response to the US increasing tariffs on Chinese goods last year, which were aimed at pressuring China to change its trade practices. The ‘tit-for-tat’ move has once again pushed the market in a downtrend, after which traders engaged in panic sell-offs.

However, towards the end of last week, the market recovered slightly from the lows of the past few days. At the time of writing, Bitcoin is trading at $44,263 after an uptick of 3.6% in the past day. The 24 hour market volume has gone down by over 30% to $33.38 billion, indicating that traders have halted the panic sell-offs.

Ethereum is also trading at $2,706 after an uptick of 4.9% in the past day. The 24 hour market volume has gone down by over 30% to $55.86 billion, indicating that traders have halted the panic sell-offs.

China Slaps Tariffs on US Too

With the approval of the State Council, China’s Tariff Commission announced a 10% tariff on crude oil, agricultural machinery, large-displacement cars, and pickup trucks in addition to the 15% tariff.

Moreover, China’s Ministry of Commerce and General Administration of Customs have imposed export controls on items related to tungsten, tellurium, bismuth, molybdenum and indium.

In light of Google being suspected of violating the Anti-Monopoly Law of the People’s Republic of China, China’s State Administration for Market Regulation has launched an investigation into Google in accordance with the law.

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