In the latest development within the US-China trade deal, both countries have hinted at a peaceful agreement ahead of the meeting between Donald Trump and Xi Jinping. This development has sparked widespread enthusiasm within the crypto market, with experts and investors anticipating a potential rally.

According to Treasury Secretary Scott Bessent, Trump is likely to eliminate the 100% tariffs on Chinese imports, which were slated to take effect on November 1. The deal also includes a potential final agreement on the sale of TikTok in the US.

US-China Trade Deal Takes a Turn

Reportedly, senior finance and trade officials from the US and China met in Kuala Lumpur, Malaysia, to discuss trade ahead of a meeting that President Donald Trump scheduled with Chinese President Xi Jinping in South Korea, later Trump expressed hope the US and China were nearly ready to wrap up a trade deal, mentioning, “I have great regard for President Xi, and we will certainly end up with the deal.”

Li Chenggang, China’s senior trade negotiator, supported the agreement, but said it has to pass through the approvals in the Chinese administration. He noted,

“The US position has been tough. We have experienced very intense consultations and engaged in constructive exchanges in exploring solutions and arrangements to address these concerns.”

Scott Bessent Hints at Chinese Tariff Removal

On Sunday, following the discussion between officials, US Treasury Secretary Scott Bessent revealed the remarkable progress in the US-China trade deal. He stated that the US is likely to remove the 100% tariff imposed on Chinese imports. “I think we’ve reached a substantial framework for the two leaders who will meet next Thursday,” stated Bessent, adding,

“President Trump gave me a great deal of negotiating leverage with the threat of 100% tariffs on November 1, and I believe we have reached a very substantial framework that will avoid that and allow us to discuss many other things with the Chinese.”

Trump-Xi Meeting on Thursday

This week is poised to witness a series of macroeconomic events poised to reshape the crypto market. A significant event is the soon-to-happen encounter between Donald Trump and Xi Jinping. The two heads of state will talk about important matters like tariffs, rare earth exports, and agri-product payments on Thursday.

Since a cordiality agreement has apparently been made between the nations, the meeting is going to be a plus.. The meeting could result in final decisions on the Chinese tariff, China’s rare earth exports, and the TikTok sale.

How Will the Crypto Market React?

The potential US-China trade deal has sparked widespread enthusiasm and excitement in the crypto space. “Asset prices will get crazy this week if the US-China trade deal is announced and the Fed cuts interest rates. Buckle up,” said investor and analyst Anthony Pompliano.

Notably, the crypto market is sensitive to trade war developments. This is significantly evident from the recent crypto crash on October 11. Described as the greatest of all crypto falls ever, the 1011 crash occurred in response to Trump’s 100% tariff announcement.

Thus, if the upcoming meeting ends the ongoing US-China trade war with a peaceful agreement, it could propel the crypto market into new heights. As of press time, the market is in the green zone, reaching $3.89 trillion, up 2.37%. As the industry shows signs of recovery from the recent downturn, the upcoming US-China trade deal could trigger a remarkable rally.

Conclusion

In conclusion, optimism has once again returned to global markets, including cryptocurrency markets, based on expectations of a US-China trade deal. The countries have announced they are negotiating and Trump will likely not continue with his tariff proposals, and investors are gearing up for a rally. The peace-declaring resolution that would come from Thursday’s Trump-Xi meeting could mark a pivotal shift, restoring faith and igniting a bullish trend in cryptocurrency markets.

Frequently Asked Questions

1. When will the Trump-Xi meeting take place?
   The meeting is on Thursday in South Korea.
2. What are the main points of the trade agreement between the US and China?
   The agreement’s key points are the reduction of tariffs, the exportation of rare earths, and the sale of TikTok.
3. What is the implication of the deal for the cryptocurrency market?
   A peaceful trade resolution could enhance investor confidence and launch a strong crypto rally.

Glossary

• Tariff: A tax that is levied by the government on goods that are imported, usually for the reason of protecting native industries or as part of a trade negotiations strategy.
• Trade Deal: A pact that governments sign between each other, regulating trade terms like import and export restrictions and taxes, with the overarching goal of fostering economic collaboration.
• Rare Earth Exports: Transportation of very important minerals that can be found in the electronics industry and technology, quite often a power point in trading negotiations.
• TikTok Sale: The intended process of transferring the ownership or control of the highly regarded social networking app TikTok’s US subsidiary to satisfy American regulators’ demand.
• Crypto Market: The worldwide trading platform for digital currencies such as Bitcoin and Ethereum, typically affected by changes in economic and political situations.

 

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