- Framework agreement ends tariff considerations between US and China.
- US no longer considering 100% tariffs on China.
- Past trade tensions impacted crypto markets favorably.
US and Chinese trade representatives concluded two days of discussions on October 26, 2025, in Kuala Lumpur, reaching a substantive framework agreement according to US Treasury Secretary Scott Bessent.
This agreement indicates reduced trade tensions, potentially influencing risk assets, including cryptocurrencies, although no immediate market movements or policy changes have been reported yet.
US-China Framework Halts 100% Tariff Plans
On October 26, 2025, US and Chinese trade teams concluded critical discussions in Kuala Lumpur. US Treasury Secretary Scott Bessent confirmed the formation of a very substantive framework agreement with China. This prevents the additional tariffs that the United States considered, according to statements made during a press briefing.
With the agreement reached, the US is no longer contemplating a 100% tariff on China. President Donald Trump supported the discussions, expressing optimism upon his arrival in Malaysia.
Market responses indicate potential positive shifts, albeit without direct impacts on cryptocurrency assets. Historically, trade stabilization has benefited BTC and ETH.
Trade Deal Sparks Positive Sentiment in Crypto Markets
Did you know? The 2025 US-China framework agreement, like previous trade resolutions, often marks a positive turn for Bitcoin prices, which saw gains post US-China trade tensions from 2019–2020.
Bitcoin currently at $115,850.64 with a market cap of approximately $2.31 trillion represents a 3.73% rise over 24 hours, recorded by CoinMarketCap. Its trading volume soared by 126.36%, contributing to an increase despite past 90-day volatility. BTC’s dominance remains robust at 58.98%.
 
Coincu’s analysis highlights the potential ripple effects of improved trade relations. Reduced trade tensions historically led to moderate bullish trends in cryptocurrencies, with stronger regulatory environments fostering stability in these markets. Continued collaboration may bolster innovation and fiscal policies, with positive ramifications for digital assets.
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Source: https://coincu.com/news/us-china-trade-framework-agreement/