Cryptocurrency Rises as the US Treasury Signals Easing Tariffs on China

The market reacted positively on Tuesday amid expectations that trade tensions between the United States and China will improve. Eamon Javers of CNBC, citing sources attending a conference at the White House, reported that U.S. Treasury Secretary Scott Bessent stated that both Washington and Beijing view the current tariff structure as undesirable. According to a source that wished to remain anonymous, Bessent is said to have emphasized that high tariffs ranging from 125% to 145% will help ease economic tensions in the near future. The cryptocurrency market in particular has reacted positively, with Bitcoin ( BTC ) trading steadily above $90,000 on Tuesday afternoon. Sources describe the current trade tension between the U.S. and China as a "sanction" and suggest that a new round of negotiations is necessary. A 'War' That Can Be Done While Bessent is said to describe the path ahead as "difficult," both governments are uncomfortable maintaining the current trade status quo. The supplementary context from the source indicates that the rebalancing of trade dynamics between the two countries may relate to the adjustment of each country's economic priorities. The United States is said to be interested in promoting production capacity, while acknowledging that China prioritizes industrial output over consumer-driven growth. While the road ahead remains uncertain, attendees left with the impression that the United States is aiming to maintain engagement with China. However, the United States will do so according to the stated goal of the Trump administration for fairer trade conditions. The White House and the Treasury Department have not made any public statements regarding the new negotiations. However, the tone and content of the reported remarks suggest that the initial groundwork for a policy change may have already been laid.