The U.S. and China have temporarily paused tariffs, announced following productive trade talks in Geneva, aimed at reducing existing tariffs for 90 days and continuing negotiations.

The tariff pause bolsters optimism in global stocks and cryptocurrencies, with Bitcoin showing strong gains. The market awaits further developments in these trade negotiations.

Tariff Ceasefire: 90-Day Reduction Agreed

The U.S. announced a temporary pause in tariffs with China following trade discussions. The agreement reduces tariffs for 90 days, offering renewed hope for a broader resolution and promoting trade stability.

“Trade talks between the US and Chinese officials have been productive… both sides now agreed to reduce tariffs imposed after April 2nd to 10% for 90 days as negotiators continue on the larger structural issues.” — Donald Trump, President of the United States

The negotiation, involving the U.S. and Chinese governments, aims to reduce tensions. U.S. President Donald Trump and economic advisor Stephen Moore played key roles in supporting the reduction of tariffs, emphasizing free trade benefits.

U.S. Equities and Crypto Surge on Tariff News

This pause induced a positive reaction in U.S. equities and global markets. Stock indexes closed higher, with risk assets like cryptocurrencies experiencing increased interest and higher prices amid market optimism.

Financial markets anticipate a positive long-term outlook, contingent on continued progress in negotiations. Analysts highlight previous trade pauses led to short-term spikes in risk assets, and improving liquidity sentiment fosters investor confidence.

Trade Talks Historically Boost Bitcoin, Ethereum

Past U.S.-China trade talks have caused sharp market movements, with cryptocurrencies like BTC and ETH benefiting from temporary resolutions. Historical trends show asset rallies during de-escalated tensions.

Kanalcoin experts suggest these negotiations may continue to sustain bullish market flows. Historical data implies that trading volumes and risk appetite increase during trade settlements, enhancing crypto and traditional asset values.

Disclaimer: This website provides information only and is not financial advice. Cryptocurrency investments are risky. We do not guarantee accuracy and are not liable for losses. Conduct your own research before investing.

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Filed under: News - @ May 17, 2025 6:16 am