$ETH Short-term financial market: Positive signals from US-China tensions

In the context of what seemed to be escalating US-China trade tensions, the global financial market unexpectedly received positive signals.

President Trump has reaffirmed his firm stance: he will not reduce tariffs on Chinese goods unless he receives a 'beneficial concession for the US.' However, it is noteworthy that China is taking a softer approach. According to Reuters, Beijing is exempting certain imported goods from the US from the extremely high 125% tariff, a move seen as aimed at alleviating pressure from the domestic business community.

The Chinese Ministry of Commerce has even established a special task force to compile a list of goods that could be exempt from tariffs and encourage domestic companies to proactively propose additional items – indicating an increasingly noticeable flexibility in trade policy.

Although both sides continue to maintain tough rhetoric, the actual actions reveal a 'soft de-escalation' process between the two largest economies in the world – a factor that could continue to support positive sentiment in the global financial market in the short term.

Conclusion: Stability in US-China trade relations is a key factor, and recent signals indicate that the risk of confrontation may be receding, opening up growth opportunities for the stock market, commodities, and digital assets in the near future.v4