A one-two punch from the United States risks shattering the already fragile trade war truce between Washington and Beijing, with Chinese tech companies and students both dealt shock blows by the Trump administration Wednesday night.

The broader cryptocurrency market dropped 2.58% on Thursday as the uncertainty resurfaces in the US trade wars. The US Treasury Secretary, Scott Bessent, states the ongoing trade discussions with China are stalled, while the US appeals court temporarily reinstated the tariffs after a separate US court blocked the policy.

Investors piled up bullish bets on Asian currencies, including the yuan, as easing U.S.-China tariff tensions, new trade deals and a growing unease with U.S. policies prompted them to pull out of dollar assets,

In his first term as president, Donald Trump banned China’s Huawei from using American EDA tools. Huawei is seen as an emerging competitor to Nvidia with its “Ascend” AI chips. Nvidia chief executive Jensen Huang recently warned that successive attempts by American administrations to hamstring China’s AI ecosystem with export controls had failed.

Prof D Mukherjee In April 2025, the World Trade Organization (WTO) reported a 6.2% decline in global trade volumes for Q1 2025, primarily driven by escalating tariffs between the US, China, and several Asian economies.

Barely a week after a high-profile joint statement signaled a pause in trade hostilities, the U.S. and China are disagreeing again.

Among dozens of countries that were hit with steep tariffs, Vietnam was among the most publicly willing to meet the demands of the Trump administration. But China is a sticking point.

The Trump administration has effectively cut off some American companies from selling goods to China, a Commerce Department spokesperson told CNN on Wednesday.