US–China Deal on Horizon : A Bullish Catalyst for Crypto ?
US-China trade negotiations are progressing, as per the White House, but no deal is finalized yet, keeping investors cautious. What will the May 12, 2025 announcement bring? Stay tuned for updates.
USA-China Talks : Progress Reported, But Uncertainty Persists
The White House has recently stated that trade discussions between the United States and China have seen “substantial progress,” sparking cautious optimism among investors.
However, with no official agreement in place, financial markets remain on edge, facing the ambiguity and implications of the trade policies of the Trump administration. According to a statement from May 11, 2025, further details on the negotiations and a potential agreement will be revealed on May 12, keeping economic players waiting in anticipation.
American Treasury Secretary, Scott Bessent, expressed in a joint statement with Trade Representative Jamieson Greer, praising the progress in the talks. “I am pleased to announce that we have made substantial progress between the United States and China in these very important trade negotiations,” he stated, as reported by Fox News.
However, Bessent avoided using the term “agreement,” focusing on the productivity of the exchanges. Greer, while mentioning the possibility of an agreement, remained vague, fueling investors’ doubts about the real scope of this announcement.
This opacity is raising suspicion among the markets, especially as US-China trade tensions heavily influence global financial stability. “Investors are tired of vague promises,” emphasized @onechancefreedm on X, reflecting a common sentiment. “Without a clear agreement, the markets will remain unstable, which is detrimental to everyone.” This uncertainty is exacerbated by the inconsistent approach of the Trump administration to trade policy, marked by frequent reversals.
Trump’s Tariffs : Increased Volatility for the Crypto Market
The Trump administration’s trade strategy has been at the center of debates since the introduction of widespread tariffs, which initially caused significant volatility in both traditional and crypto markets.
Although the markets have partly recovered, investor confidence remains fragile. In April 2024, the US Customs and Border Protection announced tariff exemptions for certain technological products such as smartphones, electronic chips, and computers, a signal perceived as positive for the tech sectors.
*LUTNICK: WE ARE OPTIMISTIC ABOUT THE PROGRESS OF NEGOTIATIONS WITH CHINA
However, the following day, Commerce Secretary Howard Lutnick clarified that these exemptions were temporary, pending the development of an overarching tariff framework with variable rates by sector. This reversal has intensified criticisms of the administration’s erratic approach. “Tariff back-and-forths sow chaos,” stated economist Nouriel Roubini in an interview with Bloomberg. “Markets need predictability, and this administration offers anything but that.”
The lack of a coherent trade policy has repercussions on the global economy. Technology stocks and crypto, already volatile, are particularly vulnerable, with investors hesitant to engage in risky assets. For example, Bitcoin hovers around $100,000, driven by speculations on Trump’s trade policies, but caution prevails.
What Lies Ahead for US-China Trade Relations ?
The ongoing negotiations between the United States and China are crucial for the global economy. An agreement could help ease tensions, stabilize markets, and promote growth, but the lack of transparency keeps investors in suspense. The promised announcement on May 12, 2025 could provide clarity, but nothing is guaranteed.
For now, Trump’s trade policies continue to shape market sentiment. The interplay between tariffs, exemptions, and negotiations highlights the delicate balance of global trade. As @onechancefreedm summed up: “Trade agreements are not just about the economy; they rely on trust. And currently,trust is lacking. “ Investors will closely monitor upcoming announcements, hoping for a resolution that brings stability to an uncertain economic landscape.
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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