The artificial intelligence (AI) cryptocurrency sector nosedived on Tuesday, posting an 8.5% decline that wiped out more than $2.5 billion in market capitalization. The sell-off came in response to escalating tensions between the United States and China, triggered by the Trump administration's aggressive tariff policies.

Trump’s 10% tariffs on China take effect, triggering retaliation Beijing imposes some counter levies, takes US to WTO Google, Tommy Hilfiger, Calvin Klein owner among China targets China tariffs come even as Trump delays duties on Canada,

Authorities also announced a Google inquiry and put the biotech firm Illumina and Calvin Klein's parent, PVH, on China's "unreliable entities list."

Donald Trump's decision to impose tariffs on imports from Canada, Mexico, and China led to a steep drop in bitcoin and broader equity markets on Monday.

Bitcoin was struggling for direction Tuesday as investors weighed up how President Donald Trump’s trade policies will affect cryptocurrency prices. The world’s largest token climbed when Trump paused plans for 25% tariffs on goods from Mexico and Canada,