Massive US-China Tariff Rollback Deal Ignites Global Markets, Crypto Prices Surge Amid Risk-On Rally

Geneva, May 12, 2025 — In a surprise move shaking up both traditional finance and the crypto market, the United States and China have reached a landmark agreement to drastically roll back tariffs on each other’s goods for an initial 90-day period. The unexpected breakthrough in the long-running trade war sent Bitcoin (BTC), Ethereum (ETH), and top altcoins climbing alongside global stock markets.

After two intense days of closed-door negotiations in Geneva, officials from the world’s largest economies announced "substantial progress," aimed at stabilizing strained trade ties and calming market volatility. US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer confirmed details at a press briefing, calling it a "constructive step toward a long-term, sustainable economic relationship."

Global Markets and Crypto Surge

Risk assets reacted immediately. Dow futures spiked over 2%, the S&P 500 climbed nearly 3%, and the tech-heavy Nasdaq Composite soared 3.5%. Asian equities followed suit — Hong Kong’s Hang Seng Index closed up 3%.

In parallel, Bitcoin price surged 4.2% to reclaim $69K, while Ethereum jumped 5.6% past $3,600. Altcoins like Solana (SOL), XRP, and Chainlink (LINK) also saw double-digit intraday gains as crypto investors cheered a global risk-on rally.

“This is the kind of macro catalyst crypto markets thrive on,” said Jayson Lee, a digital assets analyst at FalconX. “With recession fears cooling and liquidity conditions improving, expect bullish momentum in BTC, ETH, and Layer-1 tokens over the coming weeks.”

Details of the Tariff Rollback

Under the agreement, the US will temporarily slash tariffs on Chinese imports from a punishing 145% to 30%, while China will cut its levies on American goods from 125% to 10%. Both sides agreed to suspend retaliatory non-tariff measures, including China's restrictions on rare-earth mineral exports and investigations into US tech firms.

However, some tariffs remain — notably the US's 20% fentanyl-related levies — but the overall de-escalation marks the most significant progress since the trade war erupted in 2018.

Economic Impact and Crypto Implications

The trade war had pushed the US GDP into contraction for Q1 2025, while China's exports to America fell sharply, dragging down factory activity at its fastest pace in 16 months. Market participants are now pricing in hopes of economic recovery, improved trade flows, and reduced inflationary pressure — all bullish signals for digital assets.

Traditionally viewed as a hedge against economic instability and a high-beta risk asset, crypto markets often react positively to global liquidity boosts and macro easing. If this trade truce holds and leads to fresh stimulus in China and rate pauses in the US, crypto’s upside potential could extend into Q3.

Final Thoughts

This tariff rollback agreement is a pivotal moment for both traditional and crypto markets. With major macro tensions easing and investor sentiment improving, Bitcoin, Ethereum, and altcoins look poised for continued upside.

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Keep your eyes on the charts — the next bull run might already be here.

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