Recently, U.S. President Donald Trump announced a "total reset" in trade relations with China. This means both countries have agreed to lower the high taxes (tariffs) they had placed on each other's goods for the next 90 days. Specifically, the U.S. will reduce its tariffs on Chinese products from 145% to 30%, and China will cut its tariffs on U.S. goods from 125% to 10%.
Is this true?
Yes, this agreement has been reported by several reputable news sources. For example, The Guardian reported on May 12, 2025, that the U.S. and China agreed to a 90-day pause in their trade war, reducing tariffs significantly. Similarly, The Wall Street Journal noted that both countries are moving toward more measured trade deals, highlighting the recent tariff reductions.
Impact on Financial Markets
This development has positively influenced global financial markets. Major stock indices, such as the S&P 500, Dow Jones, and Nasdaq, experienced significant gains following the announcement. European markets and Brent crude oil prices also saw increases.
Impact on Cryptocurrency Markets
The easing of trade tensions between the U.S. and China has also affected the cryptocurrency market. For instance, Bitcoin's price approached record highs amid the positive sentiment from the trade deal. Similarly, other major cryptocurrencies like Ethereum experienced price increases. This suggests that developments in traditional financial markets, such as trade agreements, can have a notable impact on digital asset valuations.