In the latest development, US President Donald Trump has revealed plans to lower tariffs on China, sparking speculations of a crypto market rally. Recently, Trump acknowledged the current 145% levy is excessively high and has effectively halted trade between the two nations.
As Trump plans to lower the tariffs substantially, the crypto community is enthusiastic about a potential market rally. This article examines the reasoning behind Trump’s upcoming tariff decisions and their potential effects on the cryptocurrency market.
Crypto Market to Surge Amid Trump’s Tariff Plans
According to a recent CNBC report, US President Donald Trump has hinted at lowering tariffs on China at some point in the future to secure a fair-trade deal. “At some point, I’m going to lower them, because otherwise, you could never do business with them, and they want to do business very much,” cited Trump.
Possibly, this decision could spark a crypto market rally. A reduction in tariffs could ease inflationary pressures and interest rate hikes, potentially benefiting the crypto market. Given the historical patterns, Bitcoin and other cryptocurrencies might see significant benefits from such a tariff move.
US and China to Agree on a Fair Trade
Notably, the US has currently imposed a high tariff of 145% on Chinese imports. In response, China has increased its tariff to 125% on American trade. This move has significantly impacted the markets and is likely to trigger inflation. Higher tariffs could lead to increased prices for manufacturing equipment and everyday essentials like clothing and toys that many Americans depend on.
This critical situation has led Trump to think about lowering tariffs, which could decrease costs for consumers and businesses, benefiting the US economy. While expressing optimism about reaching a trade deal with China, Trump recognized some of the former’s recent statements as “positive.”
The recent developments suggest China is open to trade talks with the US following President Trump’s tariff announcements. This potential shift could signal the start of negotiations between the two countries, leading to Trump’s tariff easing.
How Will Trump’s Tariff Easing Impact Crypto Market?
Since Trump’s tariff announcements, the crypto market is experiencing severe fluctuations, with top cryptocurrencies like Bitcoin, Ethereum, and XRP seeing dumps and pumps. Bitcoin’s recent price fluctuations have been notable, initially holding steady despite traditional market downturns before dipping below $80,000. However, with current trading above $94,000, Bitcoin might reportedly surge past $100,000 as the US’ potential tariff easing could boost market sentiment.
The post Trump Signals Lower Tariff on China: Crypto Market Eyes Major Rally appeared first on CoinGape.
