US President Donald Trump stated that the proposed 100% tariffs on Chinese goods ‘won’t hold.’ This signaled a softening of rhetoric and eased some concerns about a new round of trade war between the two countries.
Softening Rhetoric Eases Market Pressure
Trump’s statement came amid escalating global trade tensions. In an interview with Fox News, he emphasized that ‘China has taken advantage for many years, harming the American economy, but now the situation has changed.’
When asked about the possibility of maintaining the 100% tariff, the president answered negatively, adding that such measures are ‘unsustainable.’ According to him, negotiations with Xi Jinping will take place in South Korea in two weeks, and the White House expects a ‘good result.’
Cryptocurrencies Bounce Back After Crash
The market took the statement as a signal of easing trade tensions. Bitcoin rose by almost 2% on the hourly chart, followed by other major cryptocurrencies.
The softening rhetoric reduced investor fears about capital flight from risk assets. This turnaround contrasts with last week’s events, when markets plunged sharply after Trump announced sweeping tariffs and export restrictions against China—the toughest since 2019.
Investor Reaction and Outlook
Traders see the administration’s new course as a positive signal for risk assets, including cryptocurrencies, stocks, and the tech sector. Analysts note that easing tariff policy could revive interest in digital assets, which are sensitive to geopolitical uncertainty.
If US-China negotiations are successful, the market may see further strengthening of bitcoin and increased risk appetite.
What’s Next?
The coming weeks will be key for assessing the White House’s political intentions. If Washington truly abandons tough tariffs, the crypto market will receive short-term support and may consolidate in a growth zone.
Read more: Dubai and peaq form a legal framework for the machine economy of the future
