#TradeWarEases Attention Binance community! Today, May 12, 2025, we have some major macroeconomic news that could move global markets. The United States and China concluded their high-level talks in Geneva and, surprise!, announced "substantial progress" and issued a joint statement with concrete measures.

What Did the Two Powers Agree?

After weeks of tension and skyrocketing tariffs, this agreement represents a significant respite. The key points are:

* Goodbye (Partially) to Excessive Tariffs! Both sides agreed to a significant reduction in the tariffs they imposed on each other during the recent escalation. Basically, they will suspend a large portion (24 percentage points) of those additional rates for an initial period of 90 days, returning to a base level of 10%.

* China Also Gives In: In addition to reducing its tariffs, China will eliminate or suspend the non-tariff countermeasures it had applied against the U.S. since early April.

* Temporary Truce: It's crucial to understand that this is a 90-day truce. The goal is to create a calmer environment so the negotiating teams can work toward a more comprehensive and lasting agreement on the underlying issues.

* Continued Talking: Both sides committed to continuing consultations and dialogue on economic and trade issues.

How Does This Impact Markets (Including Crypto)?

This news has already generated positive reactions in traditional markets, with reports of stock market gains. Why? Less trade tension between the world's two largest economies generally reduces uncertainty and improves risk appetite globally.

For the crypto world, although the impact isn't direct, a more stable and optimistic macroeconomic environment is generally beneficial. Less fear of an all-out trade war can translate into:

* Greater overall investor confidence.

* Potentially, more capital willing to flow into assets considered "risky," such as cryptocurrencies.

However, it's vital to keep things in perspective: this is a temporary solution. Uncertainty persists about what will happen after the 90 days, and the structural problems between the US and China remain unresolved.

What Do We Expect Now?

All eyes will be on the negotiations that take place during this 90-day window. Will both sides be able to make progress on complex issues such as intellectual property, subsidies, and market access? The success or failure of these future talks will determine whether this truce is the beginning of a more stable trade relationship or just a temporary pause.

What do you think?

* How do you think this trade truce will impact crypto market sentiment in the short term?

* Are you optimistic about negotiations in the next 90 days?

* Do you see this as an overall positive sign for the global economy?