Global financial markets, including the burgeoning cryptocurrency sector, have shown significant volatility following a pivotal announcement regarding Sino-American trade relations. A newly brokered temporary agreement aims to alleviate ongoing economic friction, sparking immediate reactions across various asset classes.
Key Details of the US-China Trade Understanding
On May 12, 2025, officials representing the United States and China finalized a 90-day accord designed to reduce mutual import duties. This development emerged from discussions involving U.S. Treasury Secretary Scott Bessent, Trade Representative Jamison Greer, and Chinese Vice Premier He Lifeng. According to their joint statement, a series of conciliatory measures are slated to take effect from May 14, 2025, in an effort to de-escalate the protracted trade dispute.
The agreement reportedly includes a substantial adjustment in mutual tariffs for the 90-day period. As part of this understanding, the new tariff rate on Chinese goods entering the U.S. will be 30%, while U.S. products imported into China will be subject to a 10% tariff. It is important to note, however, that these revisions do not encompass all sectors; for instance, higher tariffs on fentanyl imported into the U.S. from China will remain unchanged. Both nations have also committed to establishing a “mechanism for continued discussions on economic and trade relations.”
U.S. Treasury Secretary Scott Bessent commented on the talks, stating, “The consensus of both delegations is that neither side wants a rupture… We want trade. We want more balance in trade. And I think both sides are committed to achieving that.“
Expert Perspectives and Market Reactions
While many analysts view this agreement as a potential “thaw” in the U.S.-China trade war, some maintain a degree of skepticism. Jan von Gerich, chief analyst at Nordea financial group, remarked to Reuters, “Markets have taken this at face value, I am personally a bit skeptical. If you want to ultimately get low tariffs, then why do it this way?”
The cryptocurrency market responded promptly to the news. Bitcoin (BTC) experienced a notable surge, momentarily exceeding the $105,000 mark before retracing slightly, unable to consolidate above this significant level.
U.S. stock futures also saw an uplift. Contracts for the S&P 500 index climbed by 2.7%, and Dow Jones futures increased by 2%, based on available market data. The underlying indices themselves reflected their May 9 closing levels, with a more pronounced market reaction anticipated once U.S. trading sessions commence.
This trade development follows a period of heightened tension, notably after U.S. President Donald Trump implemented foundational and reciprocal tariffs on April 2, 2025, an event referred to as “Liberation Day.” The subsequent escalation of the trade conflict with China has been a primary driver of volatility across global markets, including the digital asset space.
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