#BreakingCryptoNews #UpdateAlert
Washington/Beijing – May 12, 2025
In a move that has sent shockwaves through global markets, the United States and China have agreed to a 90-day pause in their long-standing trade war, slashing tariffs in a mutual bid to reset economic relations and calm market volatility.
The Agreement at a Glance:
U.S. tariffs on Chinese goods have been reduced from 145% to 30%.
China responded by cutting tariffs on American imports from 125% to just 10%.
Both nations will use this window to renegotiate terms on trade imbalance, technology transfers, and supply chain access.
Market Response: Wall Street and global exchanges responded immediately:
The S&P 500 ETF (SPY) rose to $581.91, climbing 0.03%.
The iShares China Large-Cap ETF (FXI) jumped 3.2% to $35.98.
Cryptocurrency markets also saw a brief uptick, with Ethereum and XRP gaining as investor sentiment improved.
Why It Matters: This ceasefire comes at a critical time, with inflation pressures and geopolitical strains testing investor confidence. Experts suggest the temporary tariff rollback could inject much-needed optimism into international trade and investment flows.
What’s Next: The 90-day period is being seen as a test. If progress is made, it could lead to a more comprehensive deal. But failure to align on core issues—like digital regulation and rare earth exports—could reignite the economic standoff.
Conclusion:
This tariff truce marks a hopeful yet cautious chapter in U.S.-China relations. For now, bulls are running on Wall Street, but whether this détente becomes lasting peace or a brief pause remains to be seen.
