TLDR
- Trump has signaled plans to lower tariffs on China to secure a fair trade deal
- Current tariffs are extremely high (145% US on China, 125% China on US)
- Trump acknowledged these high tariffs have effectively halted trade between the nations
- Bitcoin is trading above $94,000 and may surge past $100,000 if tariffs are eased
- US officials are in talks with Chinese officials about various trade matters
US President Donald Trump has indicated plans to reduce tariffs on China in the future, potentially opening the door to renewed trade relations between the world’s two largest economies.
This development has sparked interest in cryptocurrency markets, with Bitcoin currently trading above $94,000 and analysts suggesting a possible surge past the $100,000 mark if trade tensions ease.
Trump acknowledged that the current 145% levy on Chinese imports is “excessively high” and has effectively halted trade between the nations. In response to American tariffs, China has imposed a 125% tariff on US goods, creating a trade standoff that has impacted markets and raised concerns about inflation.
“At some point, I’m going to lower them, because otherwise, you could never do business with them, and they want to do business very much,”
Trump stated, according to a CNBC report. The president expressed optimism about reaching a trade deal with China and described some of the country’s recent statements as “positive.”
The high tariffs have created economic challenges for both nations. The trade restrictions have increased prices for manufacturing equipment and everyday essentials like clothing and toys that many Americans depend on.
Trade Relations on the Horizon
While traveling aboard Air Force One on Sunday, Trump told reporters that US officials were speaking with Chinese counterparts about “a variety of different things.” When asked if any trade agreements would be announced this week, he suggested that could “very well be” but provided no specific details.
Trump mentioned he had no immediate plans to speak with Chinese President Xi Jinping this week. His main priority appears to be securing what he describes as a “fair trade deal” with China.
The president has engaged in a complex trade strategy since taking office. On April 2, he imposed a 10% tariff on most countries, along with higher rates for many trading partners that were then suspended for 90 days.
He has also implemented 25% tariffs on automobiles, steel, and aluminum, with 25% tariffs on Canada and Mexico, and the 145% tariffs on China that are now under discussion for potential reduction.
Crypto Market Implications
The cryptocurrency market has experienced volatility since Trump’s tariff announcements, with major cryptocurrencies like Bitcoin, Ethereum, and XRP seeing price fluctuations. Bitcoin initially held steady despite traditional market downturns before dipping below $80,000.
Current trading prices show Bitcoin above $94,000, and market analysts suggest a potential surge past $100,000 if US tariff easing boosts market sentiment. A reduction in tariffs could ease inflationary pressures and reduce the need for interest rate hikes, factors that have historically benefited cryptocurrency markets.
BTC Price
Trump’s stance on China appears to have evolved slightly, as indicated in a recent NBC News interview. While maintaining that he had been “very tough with China,” he acknowledged that trade between the world’s top economies had essentially been cut off.
“We’ve gone cold turkey,” Trump said in the interview that was recorded Friday and broadcast Sunday. “That means we’re not losing a trillion dollars… because we’re not doing business with them right now. And they want to make a deal. They want to make a deal very badly.”
Bitcoin $BTC Update:
📉 $95K looks like a good level of support on the lower timeframes
⚠️ Losing that level could see a drop to the range lows at $92 – $93K pic.twitter.com/sUeUIx2Dcp
— Trader Edge (@Pro_Trader_Edge) May 4, 2025
The president suggested that for some countries, he might be “setting a certain tariff” in the next two to three weeks rather than reaching an agreement. However, it remains unclear if he was referring to the reciprocal tariffs announced on April 2, which are scheduled to take effect on July 8 after a 90-day pause.
Trump repeated his claim that China had been “ripping us for many years” on global trade and criticized former President Richard Nixon’s move to establish relations with China as “the worst thing” Nixon ever did.
Despite the harsh rhetoric, Trump’s recent comments suggest a potential path toward renewed trade negotiations, which could benefit both traditional and cryptocurrency markets if tensions ease and a “fair deal” is reached.
Trump’s tariff policies have created a complex global trade landscape since April 2, with varied rates applied to different countries and trading partners.
