US and China Reached a Temporary Trade Agreement to Ease Escalating Tariff Pressures

United States and China have reached a temporary trade agreement to ease escalating tariff pressures, suspending a 24% tariff on each other’s goods for 90 days

The United States and China have reached a temporary agreement to ease escalating tariff pressures. As part of the deal finalized in Geneva during a meeting of the two countries' economic officials, both sides will suspend a 24% tariff on each other's goods for 90 days.

The agreement also includes the cancellation of additional tariffs introduced in April by both governments. The existing 10% tariff on the affected goods will, however, remain in place throughout the suspension period.

The two sides agreed to cooperate in reviewing and adjusting their trade policies by May 14, 2025. They will also hold meetings at various levels to continue macroeconomic dialogue and coordinate economic policies.

The news of the U.S.-China trade deal brought sharp gains in the cryptocurrency market, with Bitcoin (BTC) going above $104,000.

What Happened: The White House announced that the U.S. will suspend the 24% tax on Chinese goods for 90 days. China has promised to put similar measures into effect.

The administration is also canceling tariffs imposed through U.S. Executive Orders No. 14259 and No. 14266.

Announcing the same, China’s Ministry of Finance stated that the country will be suspending its own 24% tariff for 90 days and canceling tariffs imposed through announcements No. 5 and No. 6 issued in 2025.

The cancellation of additional tariffs introduced in April brings a positive outlook to financial markets. Following talks in Geneva, the two sides decided to map out a common path for future negotiations. The resolution of trade controversies has led to an increase in Bitcoin (USD:BTC).

After the statement, Bitcoin rose past $104,000. Experts are attributing this movement to increased investor confidence. The worsening trade dynamics have brought instability to global markets and affected over $600 billion in bilateral trade.

The heightened tensions began in April after President Donald Trump decided to raise tariffs on Chinese goods to 145%. In response, China increased tariffs on American goods to as high as 125%.

Significantly, the news of the U.S.-China trade deal comes amid heightened interest in cryptocurrencies. The Fear and Greed Index for Thursday signals a high level of greed in the market, standing at 70.

This bullish attitude among crypto market participants might be due to the recent price surge in major cryptocurrencies like Bitcoin and Ethereum (CRYPTO: ETH).

According to crypto expert Michaël van de Poppe, Bitcoin’s recent sharp rise might indicate a forthcoming consolidation period. He further noted that altcoins could begin to show strength as investors are typically diversified in the crypto marketplace.

Moreover, the analyst believes that Bitcoin is set to hit a new all-time high with the recent rally past $104,000.

The agreement includes the suspension of the 24% tariff for 90 days and the cancellation of tariffs imposed through U.S. Executive Orders No. 14259 and No. 14266. China’s Ministry of Finance announced the suspension of its own 24% tariff for the same duration and cancellation of tariffs under announcements No. 5 and No. 6 issued in 2025.

Both governments are committed to reviewing and adjusting their trade policies by May 14, 2025. The announcement also included plans for future meetings to continue economic dialogue.

Earlier in April, the trade conflict intensified following a decision by President Donald Trump to raise tariffs on Chinese goods to 145%. China responded by increasing tariffs on American goods to as high as 125%, causing instability in financial markets and affecting over $600 billion in bilateral trade.

The crypto market reacted quickly to the trade agreement. Bitcoin price crossed the $104,000 mark shortly after the official announcement. Ethereum also saw gains, crossing $2,500. Analysts attributed this to reduced geopolitical risk and improved market liquidity.

Rekt Capital, a crypto trader, observed that the price breakout followed a previous liquidity sweep and retest of demand levels. Bitcoin formed a higher low structure before breaking key resistance levels. These technical patterns contributed to the confidence behind the rally.

White House economic adviser Kevin Hassett confirmed that the agreement was approved by President Trump. He also stated that the administration is working on similar trade deals with other countries, modeled after the current U.S.-China framework.

The current trade agreement is a temporary framework to facilitate ongoing negotiations. Both parties plan to reassess the tariff structure and trade policy commitments by mid-May.

A recent report highlighted what to expect from the Bitcoin price as global tariff tensions ease and broader macroeconomic shifts unfold. Analysts suggest that BTC may still be in the bullish phase of its current cycle, with potential for another rally toward a cycle peak

News data source: kdj.com

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