Freshening Up the Trade Talks: U.S.-China Tariffs in the Winds of Change
Trump advisor suggests possible reduction of China tariffs in upcoming weeks, coinciding with Bitcoin's price surge.
Things could be shifting in the ongoing U.S.-China trade saga, as per the words of White House Council of Economic Advisers Chair Stephen Miran. In an exclusive conversation with Bloomberg TV, Miran hinted at a possible decrease in current tariff rates between the two economic titans within a "few weeks."
Addressing the cameras on a casual Friday, Miran, although not directly involved in the negotiation process, expressed his confidence in President Donald Trump's determination to finalize a deal. He drew attention to the 2019 "phase one" deal as evidence of the president's knack for sealing agreements, despite widespread scepticism.
"The president has been crystal clear that he believes there'll be a deal with China," Miran shared his thoughts. "And I think the president is onto something."
While Miran refrained from speculating the exact numbers or a potential call between Washington and Beijing, he subtly hinted at a potential de-escalation in tariff rates, a move that would benefit both economies according to him.
"I'd be taken aback if tariff rates are still at the current level... within a few weeks from now," Miran opined.
Rolling the Dice: A Peek at the Wildcard Game
Earlier in the day, China's Ministry of Commerce issued a statement suggesting they were still evaluating the trade environment. Miran, however, maintained that ongoing dialogue, even without formal announcements, is a positive development. As he rightly put it, "chatting is better than no chatting at all."
When asked about the possibility of revisiting purchase agreements like the one agreed upon in 2020, Miran didn't shut the door on the idea. He acknowledged that each trading partner presents unique dynamics but agreed that such mechanisms should indeed be on the table.
He also conceded to European endeavours to increase purchases of U.S. goods as a potential step towards balancing trade relations, although he refrained from committing to any specific results.
Despite his minimal role in direct negotiations, Miran kept highlighting the president's talent for crafting deals that often surprise everyone.
The economic advisor's words have sent ripples through the crypto and equity markets, catapulting them higher. Notably, Bitcoin, the digital gold, is managing to hold the $97,000 level and seems all set to challenge the $100,000 mark in the not-so-distant future. After a panic sell-off in early April that saw the coin plummet to around $75,000, the sky seems to be the limit again.
The Golden Ties: U.S.-China Trade Wars and the Crypto Connection
The relationship between U.S.-China trade talks and Bitcoin prices might not be immediately apparent, but it can be significantly indirect:
- Market Stability and Volatility: If trade tensions ease, it could lead to less volatility in traditional markets, potentially reducing interest in Bitcoin as a hedge against economic uncertainty.
- Crypto as a Safe Haven: Increased trade tensions might drive investors towards Bitcoin as a safe-haven asset, potentially inflating its price.
- Wider Economic Context: The broader economic climate, shaped by these trade talks, can influence investor sentiment and risk appetite, indirectly impacting Bitcoin prices.
In summary, the outcome of U.S.-China trade talks could either spark or quench the flames of interest in Bitcoin, depending on how it affects market stability and investor trust in conventional assets. Like a wildcard game, the stakes are high, and the suspense is palpable.
- In the midst of ongoing U.S.-China trade talks, the White House Council of Economic Advisers Chair Stephen Miran hinted at potential decreases in tariff rates between the two countries within a "few weeks."
- Miran's optimism about a trade deal comes after the 2019 "phase one" deal, despite widespread scepticism, demonstrating President Donald Trump's knack for sealing agreements.
- While Miran was cautious about revealing exact numbers or a potential call between Washington and Beijing, he suggested a potential de-escalation in tariff rates could benefit both economies.
- China's Ministry of Commerce suggested they were still evaluating the trade environment, yet Miran viewed ongoing dialogue as a positive development, commenting that "chatting is better than no chatting at all."
- Addressing the potential revisiting of purchase agreements like the one agreed upon in 2020, Miran remained open to the idea, acknowledging each trading partner presents unique dynamics.
- The economic advisor's words sent ripples through the crypto and equity markets, with Bitcoin managing to hold the $97,000 level and seeming poised to challenge the $100,000 mark.
- The relationship between U.S.-China trade talks and Bitcoin prices can be significantly indirect, with trade tensions potentially driving investors towards Bitcoin as a safe-haven asset, inflating its price.
- If trade tensions ease, it could lead to less volatility in traditional markets, potentially reducing interest in Bitcoin as a hedge against economic uncertainty.
- The Tron network, a major player in the crypto world and an advocate of Decentralized Finance (DeFi), could potentially benefit from any positive shifts in the trade dialogue, as the outcomes could indirectly impact investor sentiment and risk appetite towards developing technologies such as cryptocurrencies, ICOs, DEXs, and Defi.
