Financial markets rallied strongly following the announcement of a provisional trade agreement between the United States and China. During negotiations in Switzerland, the two economic superpowers agreed to temporarily lower import tariffs in an effort to ease ongoing trade tensions.
For a 90-day period, the US will reduce tariffs on Chinese imports from 145% to 30%. In return, China will cut its tariffs on American goods from 125% to 10%.
Tariff Truce Triggers Market Rally
The announcement sparked immediate optimism across global markets. The S&P 500 climbed 2.5%, while the Nasdaq posted a 3.1% gain. The cryptocurrency market also reacted sharply, with major digital assets like Bitcoin and Ethereum posting significant price increases.
Bitcoin jumped over $1,500 within minutes—rising from $104,000 to $105,500. Ethereum followed with a 4.5% gain, reaching $2,620. This sudden surge highlights the sensitivity of crypto markets to geopolitical shifts—especially when signs of cooperation emerge between the world’s two largest economies.
Relief Among Investors
The temporary trade de-escalation brought a wave of relief to investors. With the threat of further escalation paused for now, confidence is rising across both traditional financial markets and high-risk assets like crypto.
US Treasury Secretary Scott Bessent emphasized that the United States is not aiming for economic decoupling from China. “Neither side wants decoupling,” he stated after the talks in Geneva. He described the agreement as an opportunity to prevent further deterioration and a step toward mutual benefit.
Although the deal is only in effect for 90 days, it sends a clear message: both countries are open to cooperation. That signal is already fueling renewed interest in risk-on investments.
After months of pressure, the crypto market once again proves its resilience. With tensions between Washington and Beijing temporarily easing, a window for recovery has opened—and both stocks and crypto are moving swiftly to capitalize on it.
