US-China Trade Deal Sends Crypto Market Soaring After Tariff Threat Removed
**US and China Reach “Substantial” Trade Framework to Avert 100% Tariffs**
On October 26, 2025, US Treasury Secretary Scott Bessent announced that the United States and China have reached a “substantial” trade framework following two days of negotiations in Kuala Lumpur, Malaysia. This landmark deal is expected to prevent the 100% additional tariffs that President Donald Trump had threatened to impose starting November 1.
The negotiations took place between Secretary Bessent and Chinese Vice Premier He Lifeng, who described the relationship between the two nations as one based on “mutual benefit and win-win results.” Both sides committed to addressing each other’s concerns and protecting progress made during this year’s consultations.
### Key Details of the Trade Framework
The agreement represents a significant shift away from the more aggressive rhetoric heard earlier in October when Secretary Bessent mentioned the possibility of tariffs “up to 500%” on China over issues related to Russian oil purchases. Instead, both countries agreed on “basic consensuses” covering six critical trade areas:
– Suspension and extension of reciprocal tariffs under US Section 301 on China’s maritime, logistics, and shipbuilding sectors
– Expanded trade in agricultural products and potential progress on Chinese purchases of US agriculture
– Enhanced cooperation on fentanyl-related law enforcement and related tariffs
– Adjustments to export controls
– Deferral of China’s rare-earth export curbs
Treasury Secretary Bessent highlighted that the framework opens the door for further discussions beyond immediate tariff concerns, aiming to build a sustainable and stable trade relationship.
### Impact on Financial and Crypto Markets
Following the announcement, cryptocurrencies experienced notable gains. Bitcoin rose above $115,000—an increase of about 1.8%—while Ethereum jumped 3.6% to over $4,200, and Solana climbed 3.7%. The global crypto market capitalization also increased approximately 1.9% to roughly $3.92 trillion. Bitcoin dominance held steady near 57.7%, with Ethereum maintaining about 12.5% of the market share.
Crypto markets have been particularly sensitive to trade tensions throughout 2025. Earlier in October, President Trump’s threat of 100% tariffs triggered significant market volatility, where some tokens lost up to 99% of their value within 24 hours.
Industry experts see the recent positive developments as a strong bullish signal. Jeff Park, an advisor at Bitwise, predicts that both Bitcoin and gold could reach new all-time highs. Investor Anthony Pompliano also suggests that asset prices may surge further if the trade deal is finalized and the Federal Reserve decides to cut interest rates.
### Looking Ahead
Both the US and China have agreed to continue working out specific details through their domestic approval processes. Beijing affirmed that “close communication” would persist under the existing consultation mechanism to keep bilateral relations “healthy, stable, and sustainable.”
President Trump and Chinese President Xi Jinping are scheduled to meet at the Asia-Pacific Economic Cooperation summit on October 31, where further progress on the trade framework may be discussed.
This breakthrough signals a promising turn in US-China trade relations and could ease tensions that have weighed on global markets throughout 2025.
https://coincentral.com/us-china-trade-deal-sends-crypto-market-soaring-after-tariff-threat-removed/
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