Cryptocurrencies crash after Trump's 100% tariffs on China

Two major cryptocurrencies have crashed after Donald Trump imposed 100 per cent tariffs on "any and all critical software" from China, as trade tensions continue to escalate between the two countries.

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Bitcoin and Ethereum both saw record liquidations as investors reacted to fears over a trade war, which saw many crypto investors move their money to stablecoins or safer assets.

In the last 24 hours, Bloomberg reports that bets worth more than $19bn have been wiped out, with Trump's announcement on X sparking a decline of more than 12 per cent in Bitcoin.

The president added that he was imposing the tariffs because of export controls placed on rare earths by China.

He wrote: 'Based on the fact that China has taken this unprecedented position, and speaking only for the USA, and not other nations who were similarly threatened, starting Nov. 1, 2025 (or sooner, depending on any further actions or changes taken by China), the United States of America will impose a tariff of 100% on China, over and above any tariff that they are currently paying.

'It is impossible to believe that China would have taken such an action, but they have, and the rest is history. Thank you for your attention to this matter!'

Earlier, President Donald Trump sent the market tumbling while escalating his trade war with China and threatening a 100 percent tariff "over and above" current rates for Beijing.