nickthomas2@benzinga.com
3 min read
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A major shift in the ongoing U.S.–China trade war took place Sunday evening as officials announced a short-term agreement that significantly reduces tariffs on both sides. The move triggered a sharp rally in equities, while crypto markets declined in response.
"U.S. CUTTING TARIFFS ON CHINA TO 30% FROM 145%, CHINA DROPPING U.S. TARIFFS TO 10% FROM 125% — BOTH FOR 90 DAYS," the White House said.
The announcement followed negotiations held over the weekend in Geneva, marking one of the most meaningful steps toward easing trade tensions between the two economic superpowers.
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In a joint statement, both the U.S. and China confirmed:
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A 115% reduction in newly imposed tariffs, while maintaining a 10% baseline tariff.
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Suspension of retaliatory tariffs and non-tariff countermeasures introduced since early April.
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Continued enforcement of certain legacy tariffs, including Section 301, Section 232, and others related to national security.
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A commitment to further talks aimed at rebalancing trade and addressing long-term imbalances.
"Today's agreement works toward addressing these imbalances to deliver real, lasting benefits to American workers, farmers, and businesses," the White House said. .
The U.S. will be represented in ongoing discussions by Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer, while China will be represented by Vice Premier He Lifeng.
Following the announcement, the Nasdaq surged more than 4% during Monday’s session — an indication that equity markets are optimistic about the pause in trade hostilities.
In contrast, Bitcoin declined 2.36% on the day. Despite the historic deal, traders are pointing to technical exhaustion and a sharply extended rally in recent weeks — with Bitcoin up more than 40% since mid-April — as possible reasons for the pullback.
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Bitcoin rejected at the weekly resistance level of 104,460 and is currently trading near 101,242, having broken below a wedge structure on the intraday chart.
