In a surprising turn of diplomacy, the United States has reduced tariffs on Chinese goods from 145% to 30% for 90 days, while China has reciprocated by cutting tariffs on U.S. imports from 125% to 10% over the same period.
The move temporarily halts a spiraling trade war that has roiled global markets and disrupted supply chains.
Crypto Market Could Benefit from Risk-On Sentiment
The easing of trade tensions is likely to trigger a broader “risk-on” shift in financial markets, benefiting speculative and high-growth asset classes — particularly cryptocurrencies.
Historically, crypto assets have rallied on signs of improving macroeconomic stability and risk appetite. Lower tariffs mean improved international trade flow and reduced inflationary pressures, both of which may increase liquidity and investor confidence in the market. This could lead to renewed inflows into Bitcoin and altcoins, especially as traditional investors diversify in anticipation of a longer-term resolution.
Short-Term Expectations
- Increased volatility as traders digest the news and assess its impact on interest rates and global growth.
- Potential price spikes in top assets like Bitcoin and Ethereum as macro uncertainty temporarily fades.
- A rally in Asian altcoins or projects with China ties, amid expectations of renewed economic momentum.
Still, with only a 90-day window, analysts caution that optimism could fade quickly if negotiations stall or reversals occur.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
Source: https://coindoo.com/u-s-and-china-officially-slash-tariffs-for-90-days-what-it-means-for-crypto/