The agreement to lower tariffs between the US and China may positively impact financial markets, as seen from recent statements by officials from both countries.
US-China Tariff Agreement
On May 12, the White House announced a reduction in tariffs by both countries to 10% for an initial 90-day period starting May 14, a 24% decrease from current levels.
Impact on Cryptocurrencies and Stocks
According to Aurelie Barthere, principal research analyst at Nansen, the constructive tone of negotiations and the suspension of additional tariffs could aid altcoins and traditional stock markets in their recovery. 'Bitcoin is already trading close to its all-time highs,' she noted.
Potential Tax Relief as a Growth Catalyst
Barthere added that a potential tax relief package could serve as an additional catalyst for the markets, though it would need to be more than just an extension of expiring tax cuts. She noted that Treasury Secretary Scott Bessent hinted at the possibility of such a package by mid-July.
Thus, positive changes in trade policy and potential tax relief may have a significant impact on the recovery of stock and cryptocurrency markets.
