US is considering halving china rates: financial markets and cryptomarkt respond positively

At the beginning of April the trade war between the United States and China reached a new high point. President Donald Trump’s government introduced import duties to no less than 145% on Chinese goods. China responded with rates of 125%.

These escalating tensions caused panic in the financial markets, which are hard outputs because of the uncertainty about the next steps of both economic superpowers.

Now there is finally a turning point. According to journalist Walter Bloomberg, America is willing to considerably lower the rates. On X he reports that Washington is considering reducing the import duties on Chinese products by 50% to 54%.

China rates possible halved

The reduction would not only apply to China. Other South Asian countries could also benefit from lower rates, whereby import duties may be reduced to 25%. This makes it more attractive for companies to shift their production from China to other countries in the region.

The timing of this news is striking. While American and Chinese officials in Switzerland meet for intensive trade discussions, the call for reducing rates. The American Minister of Finance, Scott Bessent, recently called the current rates “untenable”.

Economic effect: lower prices and market recovery

A reduction in rates would have direct consequences. Consumer prices in both the US and Asia would fall, which strengthens purchasing power and fueling economic growth. For the financial markets, this mainly means clarity – something that investors strongly long for.

An example is ChipGigant Nvidia, which was hit hard by the rates increased due to its strong dependence on Chinese production capacity.

Cryptomarkt responds optimistic

The Cryptomarkt also shows a strong response to the news. Investors seem to have faith in a possible cooling of the rates war. Bitcoin (BTC) has since been broken by the psychological limit of $ 100,000 and is now even above $ 103,000. Ethereum (ETH) is also doing excellent, with an increase of 20% in the last 24 hours.

The positive mood is also visible on the traditional markets. The Nasdaq closed the day with a profit of more than 1%, while the AEX rose 1.6% in a few days.