Treasury Secretary Scott Bessent announced that Trump's 100% tariff threat on China is "effectively off the table" after negotiations resulted in a new framework for further discussions.
This announcement reduces immediate uncertainty, potentially stabilizing global markets and possibly influencing cryptocurrency sentiment through improved risk sentiment.
Treasury Secretary Declares Tariff Threat Canceled
Treasury Secretary Scott Bessent announced that Trump's 100% tariff threat on China is effectively off the table. Recent negotiations established a framework for further talks between the US and China, addressing trade issues and agricultural purchases.
Bessent, alongside President Trump, negotiated with the Chinese Vice Premier to finalize the initial framework. This action prevents the activation of the high-stakes tariff threat, paving the way for economic dialogue between the two nations.
"President Trump gave me a great deal of negotiating leverage with the threat of the 100% tariffs on November 1st and I believe we've reached a very substantial framework that will avoid that and allow us to discuss many other things with the Chinese."— Scott Bessent, Treasury Secretary, U.S. Department of the Treasury
Tariff Removal Aims to Ease Global Tensions
Removing the threat of tariffs aims to reduce tensions in global markets. Historical precedents suggest that such trade discussions can affect macroeconomic sentiments, potentially impacting global financial markets including cryptocurrencies like BTC and ETH.
Alleviating tariff threats may lessen market volatility. Cryptocurrencies often react to geopolitical developments due to their non-correlated nature with traditional assets, as observed during previous US-China trade tensions.
Past Trade Disputes Sparked Bitcoin Volatility
Past US-China trade tensions have led to increased global asset volatility. Similar events in 2018-2019 resulted in spikes in BTC as it served as a hedge against uncertainty, affecting overall market sentiment.
Kanalcoin experts suggest the withdrawal of tariffs might stabilize broader risk assets. Historical data and trends indicate potential impacts on cryptocurrencies, though the absence of direct crypto industry comments limits specific predictions.