Following crucial trade negotiations in Geneva, the US and China have agreed to significant tariff reductions that may greatly influence global markets.
Reasons Behind China’s Tariff Reduction
China has reduced tariffs on American products from 125% to 10% in an effort to break the cycle of retaliatory tariffs that have marked trade relations with the US. This decision, prompted by global inflation and internal market pressures, aims to address rising production costs and retain international businesses.
Economic Benefits for the US
The US’s decision to lower tariffs, cutting rates from 145% to 30%, reflects a strategy to recalibrate its trade policy in line with shifting global economic priorities. It aims to stabilize economic relations and balance supply chains, reducing uncertainties affecting short-term markets.
Impact on the Cryptocurrency Market
In the wake of tariff announcements, the cryptocurrency market reacted positively. Bitcoin (BTC) appreciated by 1.88%, reaching $106,000, while Ethereum (ETH) surged 2.86% to $2,568. The overall cryptocurrency market capitalization saw a 2.13% increase, climbing to $3.40 trillion.
The tariff reductions between the US and China represent a critical moment in easing trade frictions and could catalyze growth in global markets, particularly in the cryptocurrency sector.
