Trump Plans to Lower 145% China Tariffs: Crypto Markets May Respond

TLDR

• Donald Trump plans to lower tariffs on China to secure a fair trade deal
• Current tariffs are at 145% for the US and 125% for China, halting trade between the nations
• Bitcoin is currently trading above $94,000 and might surge past $100,000 if tariffs ease
• Trump stated he has no immediate plans to speak with Chinese President Xi Jinping
• US officials are currently in discussions with Chinese counterparts about various trade matters

US President Donald Trump has indicated plans to lower the current 145% tariffs on Chinese imports, potentially easing trade tensions between the world’s two largest economies. This move could have ripple effects across financial markets, with cryptocurrency traders particularly attentive to these developments as Bitcoin trades above $94,000.

Trump acknowledged in recent statements that the existing tariff levels are “excessively high” and have effectively halted trade between the US and China. “At some point, I’m going to lower them, because otherwise, you could never do business with them, and they want to do business very much,” Trump stated according to CNBC reports.

The high tariffs have created economic pressure on both nations. China has responded with its own 125% tariff on American goods.

These elevated rates have impacted markets and could trigger inflation. Higher tariffs typically lead to increased prices for manufacturing equipment and everyday consumer goods that many Americans rely on.

Market Reaction and Cryptocurrency Impact

The cryptocurrency market has shown sensitivity to these trade developments. Bitcoin and other major cryptocurrencies have experienced price volatility since Trump’s announcements about potential tariff adjustments.

Bitcoin initially held steady despite traditional market downturns before dipping below $80,000. It has since recovered and is currently trading above $94,000.

Some market analysts suggest Bitcoin could push past the $100,000 mark if US-China trade relations improve. A reduction in tariffs might ease inflationary pressures and reduce the need for interest rate hikes.

This economic environment could potentially benefit cryptocurrency markets based on historical patterns. Digital assets often perform well during periods of reduced trade tensions and economic stability.

US-China Trade Negotiations

Trump told reporters aboard Air Force One that he has no immediate plans to speak with Chinese President Xi Jinping this week. However, he confirmed that US officials are engaged in discussions with their Chinese counterparts on various trade matters.

When asked if any trade agreements would be announced this week, Trump responded that it “could very well be” but provided no specific details. His administration has been conducting numerous meetings with trading partners since implementing the 10% tariff on most countries on April 2.

Trump has characterized China as “ripping us for many years” on global trade. However, his recent tone has shifted somewhat.

In an NBC News interview taped Friday and broadcast Sunday, Trump sounded more optimistic about China and the prospects for reaching an agreement. He acknowledged being “very tough with China” but noted Beijing now wants to make a deal.

“We’ve gone cold turkey,” Trump said, referring to the current trade standoff. “That means we’re not losing a trillion dollars… because we’re not doing business with them right now. And they want to make a deal. They want to make a deal very badly. We’ll see how that all turns out, but it’s got to be a fair deal.”

The potential shift in policy could signal the beginning of new negotiations between the two countries. Both sides appear to recognize the economic costs of prolonged trade disputes.

Trump’s main priority with China remains securing what he describes as a “fair trade deal.” His administration seems prepared to adjust tariff policies to achieve this goal.

Recent developments suggest China may be open to trade talks with the US following Trump’s statements. This could lead to tariff reductions and potentially improved economic relations between the two powers.