From Yahoo Finance: 2025-05-13 14:01:00

The U.S. and China have agreed to a 90-day trade truce, reducing tariffs and establishing a structured negotiation framework. This move is expected to drive a rebound in risk assets. Tariffs on Chinese imports will include a 30% tariff, with potential reductions based on progress in fentanyl negotiations. Chinese tariffs on U.S. goods have been lowered to 10%.

Negotiations have shifted to a cooperative tone, emphasizing common interests and rejecting economic decoupling. Markets responded positively, with one-year yields rising. Ongoing talks may address company-level solutions in sensitive sectors. The clearer macro picture is impacting digital assets, with Bitcoin surging and Ethereum gaining momentum.

BlackRock’s meeting with the SEC to discuss Ethereum ETF staking indicates a shift towards institutional tokenization efforts. Market behavior differs from 2021, focusing on digital assets with real-world use cases. The truce agreement aims to expand market access in China for U.S. goods, including agricultural exports and financial firms. Analysts see potential for risk assets to surpass January peak levels with a tax cut package.

Read more: Can The US-China Tariff De-Escalation Send Bitcoin, Ethereum To New Highs?