United States Treasury Secretary Scott Bessent said on Sunday that Washington and Beijing have reached a “substantial” trade framework, easing tensions between the two economic powers and boosting investor confidence across global and crypto markets.
Bessent said the agreement would likely eliminate the need for the 100% additional tariffs that President Donald Trump announced on October 10.
“President Trump gave me strong negotiating leverage with the threat of 100% tariffs on November 1,” Bessent said. “I believe we’ve reached a very substantial framework that will help us avoid that outcome and open the door to broader discussions with China.”
The announcement follows weeks of thawing trade tensions and comes ahead of a planned meeting between President Trump and Chinese President Xi Jinping at the Asia-Pacific Economic Cooperation (APEC) summit on October 31.
Trump had previously dismissed the need for talks with Chinese officials, sparking fears of an escalating trade war that rattled investors and markets earlier this month.
Crypto Markets React Positively
The news of a potential breakthrough sparked a modest rally in crypto markets, with Bitcoin (BTC) climbing 1.8%, Ether (ETH) up 3.6%, and Solana (SOL) rising 3.7% in the hours following Bessent’s remarks.
Crypto traders have closely tracked developments in U.S.-China trade relations, as market sentiment has often mirrored global risk trends. Earlier in October, Trump’s tariff announcement triggered a sharp sell-off, with some tokens losing up to 99% of their value within 24 hours.
Market analysts welcomed the latest progress.
Jeff Park, an adviser at Bitwise, said the breakthrough could push Bitcoin and gold toward new all-time highs.
Investor Anthony Pompliano echoed the optimism, posting on social media:
“Asset prices will get crazy this week if the U.S.-China trade deal is announced and the Fed cuts interest rates. Buckle up.”
The tentative framework marks one of the most significant diplomatic and economic developments between the two countries in recent years and could help stabilize both traditional and digital asset markets heading into the end of 2025.
Featured image from: reuters.com