President Donald Trump has made a surprising U-turn in the ongoing US-China trade war, announcing plans to reduce tariffs on Chinese imports to 80%, down from the steep 145% duties imposed in April 2025. The sudden shift comes as financial markets reel from the impact of the high tariffs and amid mounting pressure from influential advisors like Treasury Secretary Scott Bessent, who warned that the higher rates were “unsustainable.”
A Strategic Play or a Policy Pivot?
Trump’s decision to lower the tariffs appears to be a calculated move aimed at stabilizing economic ties ahead of critical trade negotiations with Beijing set for May 10. The President hinted at the potential rollback in a series of Truth Social posts, suggesting that the decision ultimately rests with Scott Bessent. Bessent, who will lead the US delegation in the upcoming talks, is expected to push for a more balanced trade agreement to ease market volatility.
While Trump initially dismissed the idea of scaling back tariffs, his softened stance raises questions about whether the US is preparing for a broader policy shift or merely engaging in a strategic dance to secure a more favorable deal. Trump also demanded China open its markets, calling the move “so good” for them. But will Beijing comply, or could this be a mere bargaining chip?
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Potential Ripple Effects on Bitcoin and Global Markets
The proposed 80% tariffs could have broader implications beyond US-China relations. Despite the ongoing trade tensions, Bitcoin surged past $100,000 this week, showing resilience amid economic uncertainty. Analysts suggest that a potential de-escalation in the trade war could further bolster Bitcoin’s rally, as investors seek refuge in alternative assets. However, if negotiations stall or tensions flare up again, the markets may experience renewed volatility.
As the US and China prepare to enter high-stakes negotiations, all eyes are on Scott Bessent and his approach to balancing economic stability with strategic interests. Will the proposed tariffs pave the way for a de-escalation, or is a new phase of trade tensions on the horizon?
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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