- China lowers tariffs on U.S. goods from May 14, 2025.
- Temporary relief seen in affected trade industry.
- Potential volatility for crypto markets noted.
China announced a reduction in tariff rates on imports from the U.S., dropping from 34% to 10% effective May 14, 2025.
This tariff adjustment represents a tentative step toward easing U.S.-China trade tensions.
China Slashes Tariffs to 10% Amid Trade Deal
China’s Tariff Commission revealed plans to lower tariffs on U.S. imports to 10%, beginning May 14, 2025. These changes align with recently negotiated temporary trade deals between the two countries, as highlighted in the joint statement. The decision also discontinues measures under previous tariff announcements by the same date.
As a result, businesses involved in U.S.-China trades may experience reduced costs, but the 90-day suspension period could introduce planning uncertainties. Analysts highlight possible reversion to higher rates if negotiations falter beyond this window.
“The new 10% baseline is a ‘floor,’ indicating that tariffs could rise again if negotiations falter.” — Scott Bessent, U.S. Treasury Secretary, Bloomberg Surveillance
Crypto Markets Brace for Volatility Amid Trade Changes
Did you know? Past U.S.-China tariff truces often led to temporary market calm followed by volatility, suggesting this 90-day respite could be ephemeral amidst uncertain negotiations.
Bitcoin (BTC) is trading at $103,691.42. Its 24-hour trading volume stands at $52.7 billion, a decrease of 14.92%, influenced by the broader implications of market changes. Over the past month, BTC saw an increase of 22.96% in price, with a circulating supply of 19.86 million. Data provided by CoinMarketCap as of May 14, 2025, emphasize the potential for fluctuating volumes linked to changing trade conditions.
Experts from Coincu emphasize that sustained uncertainty could lead to increased volatility in financial markets, notably affecting cryptocurrency sectors dependent on cross-border trade environments. However, the emphasis remains on reaching a more stable long-term trade agreement.
Bitcoin’s potential fluctuations reflect broader impacts from these shifts, serving as a barometer for investor sentiment amid ongoing geopolitical tensions.
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