Following the announcement that an agreement was reached in Geneva after trade talks between the United States and China, both nations took significant steps in adjusting their tariffs.
The Chinese government announced a decision to reduce tariffs on US-origin products from 125% to 10%. In response, the US administration declared a reduction of tariffs from 145% to 30% on products imported from China. These adjustments will be applicable for 90 days.
The Impact of Reduced Tariffs
China’s decision to slash its tariffs from 125% to 10% marks a pause in the long-standing cycle of retaliatory tariffs. Major motivators behind this move include global inflation putting pressure on profits and rising production costs within China’s domestic market. Additionally, this regulatory change provides a respite during a period when international brands are inclined to maintain cost advantages rather than relocate production facilities out of China.
The US administration’s move to control imports by reducing tariffs on Chinese products from 145% to 30% signifies an important step forward. This move aims to recalibrate trade relations and manage economic priorities amid evolving global economic landscapes.
The adjusted tariffs by both nations have the potential to restore balance within the global supply chain. Both countries’ actions, aligned with their respective economic and political priorities, may help eliminate uncertainties in the short term markets.
Ripple Effects in the Crypto Market
The announcement of the US-China trade agreement and the ensuing concrete steps revitalized the cryptocurrency market. Following the news of China’s tariff reductions, the largest cryptocurrency, Bitcoin (BTC) 
$105,523, made a significant recovery, rising by 1.88% from $104,000 to $106,000.
Bitcoin Price
The altcoin leader, Ethereum (ETH) 
$2,592, surged by 2.86% in the last 24 hours to reach $2,568. Other altcoins also experienced significant upward trends, contributing to the overall growth in the crypto market.
Furthermore, the total market capitalization of cryptocurrencies saw a 2.13% increase, reaching a peak of $3.40 trillion. Experts predict that the positive news flow will sustain the upward momentum in cryptocurrencies.