The global crypto market turned red on Friday as U.S. President Donald Trump warned of potential “massive” new tariffs on Chinese imports, reigniting fears of a renewed trade war that could ripple through financial markets.

In a Truth Social post, Trump said he is considering “a massive increase of tariffs” on goods from China, adding that while the move could be “painful,” it would ultimately benefit the United States. He also hinted that Washington has “many other countermeasures” under review, suggesting a broader set of actions aimed at reducing economic dependence on Beijing.

The president’s post struck a defiant tone, claiming that for every element China “monopolizes,” the United States has “two.” Trump further stated there was “no reason” to engage in talks with Chinese President Xi Jinping, signaling a tougher trade stance that could escalate tensions between the world’s two largest economies.

The comments sent jitters through markets, with risk assets reacting immediately. Bitcoin slipped below $120,000, trading at around $119,452, down 1.4% over the past 24 hours. Ethereum fell over 3%, dropping to $4,181, while major altcoins like Solana and XRP also declined more than 2%. The total crypto market capitalization slid alongside U.S. equity futures, as traders weighed the potential impact of a new wave of tariffs on global liquidity and investor sentiment.

Analysts say the prospect of heightened U.S.-China trade friction could amplify market volatility in the weeks ahead. A tariff-driven slowdown in global trade could further strain supply chains and consumer prices—conditions that tend to pressure speculative assets like cryptocurrencies.

If Trump follows through on his threat, the move could mark the beginning of a new economic phase characterized by higher protectionism and reduced cooperation, reviving memories of the 2018–2019 trade war that shook global markets.