Donald Trump announced a significant reduction in tariffs on Chinese imports, reversing his previous policy that saw tariffs climb to 145%.
This move is expected to influence global markets, potentially impacting both traditional and digital assets, given historical responses to trade policy changes.
Trump Aims to Cut 145% Tariffs on China
President Donald J. Trump proposed reducing existing tariffs that were previously increased as part of the U.S.-China trade tensions. This decision follows recent public statements on reevaluating these economic measures.
Trump’s tariff reduction announcement aims to lower import tariffs from 145% to an unspecified new level. The decision highlights an effort to alleviate previous trade barriers with China, impacting the global trade landscape. Donald Trump expressed confidence in his decision, stating: “145 percent is very high and it won’t be that high…. It will come down substantially but it won’t be zero.”
Potential Surge in U.S.-China Trade Flows
Market analysts predict the proposed decrease in tariffs could lead to increased trade flows between the two nations. The move may alleviate past tensions impacting certain sectors, notably electronics and semiconductors.
Historically, changes in trade policies have rapidly affected market volatility. Previous tariff modifications have led to temporary spikes in risk-on assets, such as Bitcoin and Ethereum, showcasing potential broad financial and economic outcomes.
2018-2020 Tariff Shifts Echoed in New Policy
Similar policy shifts in 2018–2020 demonstrated potential repercussions in global financial markets. Those changes contributed to a mixture of volatility in both equities and digital assets like BTC and ETH.
Experts from Kanalcoin highlight the possibility of increased market activity. The latest tariff adjustments could influence risk sentiment, aligning with past occurrences where trade developments spurred asset reallocation.
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