On May 12, 2025, the United States and China signed an agreement that includes a 115% reduction in tariffs over 90 days. This news significantly impacted the stock and cryptocurrency markets, particularly leading to an increase in the value of Bitcoin.
This is reported by Business • Media
Agreement Between the Two Countries
According to the agreement, starting from May 14, 2025, both parties agreed to reduce mutual tariffs, resulting from negotiations between U.S. Treasury Secretary Scott Bessent, Trade Representative Jamison Greer, and Chinese Vice Premier He Lifeng. The tariff reductions include 30% on Chinese goods and 10% on American goods. However, not all sectors are subject to these changes, notably the increased rate on fentanyl imported from China will remain in effect.
Market and Expert Reactions
“The consensus of both delegations is that neither side wants a rupture, and what happened with these very high tariffs was equivalent to an embargo, which neither side desires. We want trade. We want a better balance in trade. And I believe both sides are committed to achieving this,” said U.S. Treasury Secretary Scott Bessent.
Most experts view this agreement as a “thaw” in the trade war. However, not everyone shares this optimism. Jan von Gerich, chief analyst at the Nordea financial group, noted: “The markets took this at face value, but I am personally a bit skeptical. If you ultimately want lower tariffs, then why do it this way?”
In response to the news of the agreement, Bitcoin reacted with an increase, reaching the mark of $105,000, although it could not maintain this level. Futures on U.S. stocks also showed positive dynamics, with contracts on the S&P 500 jumping by 2.7%, and on the Dow Jones by 2%.
It is worth noting that U.S. President Donald Trump imposed these tariffs during Liberation Day on April 2, 2025, which caused high volatility in the market, including the cryptocurrency market.