The US and China have reached an agreement to reduce mutual tariffs for 90 days, and have put a pause in a commercial war that highlighted global markets.
On Monday, May 12th, Washington announced that it would cut the rates for Chinese products from 145% to 30%, while Beijing announced that it would reduce their fees from 125% to 10%. Negotiations took place on the weekends of May 10th and 11th, 2025 In Geneva, Switzerland.
The conversation, led by Treasury Secretary Scott Beschent and commercial representative Jamieson Greer, along with his Chinese deputy prime minister, Li Chenggang, and commercial representative. They were said to be “honest, deep and constructive.” By lifeng, who appeared on Sunday night.
The agreement, which comes into effect on May 14, 2025, seeks to stabilize both powers and promote deeper commercial dialogue after months of customs climbing launched by President Donald Trump by assuming the second order in January 2025.
The commercial war, strengthened by record-level taxes, has affected major sectors such as the stock market and the cryptocurrency industry. Tariffs have increased the number of Bitcoin mining hardware, mainly manufactured in China, affecting miners in the US and other markets. Furthermore, economic uncertainty It influenced investors’ perception of riskmodify the valuation of assets such as Bitcoin (BTC).
The International Monetary Fund (IMF) forecast for April 2025 to reduce the expected global growth this year by 0.5 points, reducing falls by 0.9 points in the US and 0.6 points in China, reflecting the impact of commercial tensions. Temporary, but 90-day ceasefire Both forces provide a rest to assess whether they can avoid a recession And how will this suspension affect the market for digital assets, both in BTC prices and its mining dynamics.
Impact on Bitcoin Price
Analysts say that tariff reductions could raise Bitcoin prices. Venezuelan economist and university professor Aaron Ormos Armistice improves global economic perspective. He says that by reducing the fear of the recession, the capital could flow to the BTC again.
Speaking to Cryptootics, Olmos emphasizes that the market has already shown a positive signal, with BTC prices rising recently, currently below $104,000. It encouraged discussion about the new historical greatest possible. For him, this response reflects a perception of less economic uncertainty, promoting investment in assets deemed risky, such as cryptoactive, leading potentially pioneering digital currencies to new milestones.
“With no economic recession in the near future, the capital may have begun to be placed on Bitcoin so that it appears to be happening,” the expert said.
Ormos adds that the 90-day truce provides a window for speculators. Digital assets with the potential for short-term reevaluationand temporary geopolitical stability can drive increases.
However, it warns that these rebounds do not necessarily indicate a structural improvement or an increase in adoption of the Bitcoin protocol. More than thatthey are driven by short-term factors such as commercial unwinding.
So, although BTC and other Altcoins could be uploaded, Olmos suggests that they will not interpret these movements as fundamental changes in the market. However, in response to global economic dynamics.
In addition to the cryptocurrency market, the stock exchanges also benefited from a commercial ceasefire between the US and China. Futures on major stock market indexes such as the S&P 500, Dow Jones and Nasdaq rose early in the day. The dollar was seen in front of other currencies, but the Chinese yuan reached its highest level in six months. For some of these, shares of shipping companies such as Maersk and Hapag-Lloyd. More than 10% were shot given the hopes of a recovery in international trade.
Meaning in Bitcoin mining
Meanwhile, Bitcoin mining, which relies on equipment made in China, could also benefit from the armistice. Bitcoin miner and CEO of Cryptoneros, Alexis Lugo explained to the medium that previous tariffs would increase hardware imports and force miners to avoid high costs using alternative trade routes such as Taiwan and Vietnam.
As you can see, 30% tariff reduction in the US and flexibility in China’s restrictions They can reduce access to these devices and speed up. Lugo points out that this is important for US miners whose industry has grown, supported by Trump’s provitocoin status, which has fueled mining initiatives such as Bitcoin.
In Lugo’s case, the tariff war scenario affects digital mining, but the sector does not become faint as a result of this context. “Bitcoin miners are very unning,” he says.
“Apart from the fact that because Trump is a provitocoin, indeed, the biggest mining companies have already reached an agreement in some way, so he (Trump) is subject to that tariff package and they will not cut themselves, so they will not place tariffs on such products,” Lugo said.
Short-term perspective
The Geneva Agreement, while important, does not resolve structural tensions between the US and China. Ormos shows that the impact on Bitcoin will depend on future negotiations. Durable agreements can consolidate market interests and attract institutional investors. However, if the position hardens when the ceasefire expires on August 10, 2025, uncertainty could return. It affects BTC price and hardware availability.
Lugo highlights the resilience of miners who adapted their supply chains, even at the worst moments of the commercial war. Recognizing that the armistice will promote direct imports from China, warning miners They will remain vigilant about possible changes to commercial policy.
The tariff ceasefire between the US and China reveals the horizon of attention and hope for the Bitcoin market. Investors celebrate temporary stability, but miners They expect more predictable costs. However, I remember that the permanent solution is still far away, as the contract period is limited until August 2025.
Bitcoin, a symbol of decentralization, resists geopolitical fluctuations, but its fate is linked to the decision of a great power. These 90 days will not only strengthen your position, but A challenge to prove that its value continues beyond commercial negotiations.
