Trump is considering towering rates on China: Beijing warns

Tensions between the two largest economies in the world are rising again. While investors worldwide hope for peace in international trade, it rumbles considerably behind the scenes between Beijing and Washington. And that is not without consequences, not even for the cryptomarket.

High rates threaten to return

China has warned the United States. If President Donald Trump decides next month to re -introduce his old import duties on Chinese goods, there can be solid retaliation measures.

The deadline is on August 12. Until then, a new trade agreement must be on the table. If that agreement does not do, Trump threatens with rates that can rise to more than 100 percent. The same rates already caused great unrest in the markets, also in the crypto industry.

China labels Trump’s threats as ‘harassment’ and calls for dialogue and cooperation instead. But it also warns. If other countries close deals with the US that harm China, they can also expect countermeasures. Vietnam already received a warning after it had stipulated a considerable rate reduction for export to the US, where many of those goods originally came from China.

In May the minds seemed to calm down. China and the US then agreed to further reduce import duties temporarily. In exchange, China would again supply rare earth metals, crucial for technology and the chip industry. America, in turn, would partially eliminate the export restrictions for advanced chip software. But since that time trust has quickly evaporated again.

Trump gives EU postponement

In the meantime, the clock is ticking in Europe. Trump threatens with input rates of 50 to 70 percent if the EU does not quickly come up with a trade agreement. President Trump has shifted the deadline from July 9 to August 1, which offers extra time for negotiations. EU chairman Ursula von der Leyen announced this week that he was open to a trade agreement with the US. However, there is division within the EU. Germany wants to finish the deal quickly, while France sets stricter requirements.
The American Minister of Finance, Scott Bessent, also indicated that conversations with Europe are heading in the right direction. He announced that he would expect a wave to deals in the coming days.