The economic interdependence between China and the United States, a priori (in advance), stands out amid the escalation of trade tariffs. Recent sources indicate that Beijing is considering suspending the 125% tariff on American imports, including medical equipment, ethane, and aircraft leases.

Such an initiative, driven by the costs of the trade war, seeks to protect strategic Chinese sectors, such as the plastics industry, dependent on U.S. ethane, and healthcare, which uses advanced equipment, such as MRI machines manufactured by companies like GE Healthcare Technologies.

Mutual dependence and negotiations

China, the world's largest plastic manufacturer, primarily imports ethane from the U.S., while its airlines face high costs with jet leases, unsustainable with additional tariffs. Exemptions for these leases, especially in free trade zones, are under discussion.

At the same time, the U.S. suspended 145% tariffs on Chinese electronics, signaling bilateral efforts to preserve production chains. However, negotiations remain uncertain, with Beijing denying formal dialogues while Donald Trump claims direct contacts, generating public contradictions.

Economic Impacts and Bitcoin

The possibility of tariff reduction eases trade tensions, influencing financial assets like Bitcoin. Recent posts on X indicate that Bitcoin rose more than 5% with signs of de-escalation between the powers, being seen as a safe asset amid global economic volatility.

The uncertainty generated by the trade war raises the demand for crypto assets, which offer protection against monetary and political instabilities, reinforcing their relevance in crisis scenarios.

Economic impacts and outlook

The possibility of tariff reduction reflects the economic impact of the trade war, which raised costs and reduced imports. China retaliated with tariffs of 125% on American goods but indicated that it will not increase rates further, suggesting an economic limit.

Meanwhile, Trump signaled a reduction of Chinese tariffs to 50-65%, although without unilateral actions, according to sources. The suspension of tariffs, with the necessary adjustments, could boost Asian markets like Hong Kong and Japan, but the absence of concrete negotiations keeps uncertainty intact.

Tariff flexibility

Tariff flexibility, for this same reason, does not eliminate Sino-American tensions but highlights the need for cooperation. China protects vital sectors while the U.S. acknowledges global interdependence.

Thus, the measures suggest an effort to stabilize production chains, although the lack of formal dialogue and the volatility of statements from both sides keep the scenario unstable, requiring caution in future projections.

#TrumpVsPowell #ChinaVsUS

Sources: Bloomberg, Reuters, CNBC, The Guardian

Note

Invest cautiously, using only capital that you can afford to risk. Consult regulated exchanges, such as Mercado Bitcoin, for safe trading.

The information provided in this article is of a general nature and should not be interpreted as financial, legal, or professional advice. Invest and make decisions with caution, and consult qualified experts before acting. The cryptocurrency market is highly volatile and involves significant risks.