US,China Agree 90-Day Tariff Reduction, Bitcoin Surges 1.3%

The United States and China have agreed to a 90-day tariff reduction on each other’s goods to de-escalate the ongoing trade conflict. The announcement, made on May 12, sees the US lowering its tariffs on Chinese imports from 145% to 30%. Meanwhile, China will reduce its tariffs on US goods from 125% to 10% for the same period. This decision follows months of escalating trade tensions that have disrupted global markets and strained economic relations. The crypto market also took a hit, with Bitcoin’s price plunging below $80,000 following President Trump’s tariff announcements on April 2. Nonetheless, BTC rebounded strongly from its April lows and has continued rallying. Notably, after this announcement, the largest cryptocurrency has surged 1.3%, hitting highs not seen since January 31. At press time, BTC traded at $105,251.

This tariff reduction is a significant step towards easing the trade tensions between the two economic superpowers. The move is expected to provide some relief to businesses and consumers in both countries, who have been grappling with the effects of the trade war. The reduction in tariffs is also likely to have a positive impact on global markets, which have been volatile due to the ongoing trade conflict. The crypto market, in particular, has been sensitive to geopolitical developments, and the recent surge in Bitcoin’s price is a testament to this. The reduction in tariffs is expected to boost investor confidence and lead to further gains in the crypto market. However, it remains to be seen whether the 90-day tariff reduction will lead to a lasting resolution of the trade conflict or if it is just a temporary reprieve. The outcome of the trade negotiations between the US and China will have significant implications for the global economy and the crypto market.