Trade War Eases: Global Markets and Crypto React to U.S.–China Tariff Truce
In a significant development on May 12, 2025, the United States and China agreed to a 90-day suspension of recent tariff hikes following substantial progress in trade negotiations held in Geneva. The U.S. will reduce tariffs on Chinese goods from up to 145% to 30%, while China will cut its tariffs on U.S. goods from 125% to 10% .
This agreement has positively impacted global financial markets. U.S. futures and tech stocks surged, with the S&P 500 and Nasdaq futures climbing up to 3.5% . Asian equities also closed higher, reflecting investor optimism.
In the cryptocurrency market, Ethereum (ETH) is trading at approximately $2,534.39, showing a modest increase of 0.18% from the previous close. The day's trading has seen ETH reach a high of $2,600.58 and a low of $2,452.84.
While this truce offers temporary relief, analysts caution that it is a tactical pause rather than a full resolution. Further negotiations are anticipated, and the long-term stability of global trade relations remains uncertain.
Investors are advised to stay informed about ongoing developments, as the outcomes of future discussions between the U.S. and China will significantly influence global economic dynamics.
