Trump advisor implies potential swift removal of China tariffs coordinating with Bitcoin's surge
The Dynamic Tariff War Between US and China: A Potential Boost for Bitcoin
Steve Miran, the big cheese of the White House Council of Economic Advisers, reckons the US may slash its current sky-high 145% tariff on China in a jiffy. Talking to Bloomberg TV, he hinted that President Donald Trump is all fired up about striking a deal with the Dragons and has a proven track record of making it happen.
In an interview on Friday, Miran said, "Old Donald's ballsy about making a deal with China. And I reckon he's on the money with this one." He refrained from discussing specifics or predicting a timeline for a potential meeting, but he did toss out a hint that tariff rates might soon see a dramatic drop.
"Given the interesting comebacks being shuffled between the two economies, I'd be gobsmacked if tariffs remained at their current rates within a few weeks from now," commented Miran.
Meanwhile, China's Ministry of Commerce continues to evaluate the trade environment, with on-going dialogues making headway, even without any formal announcements. Miran stressed that discussions and dialogues, no matter how subtle, are a positive step.
When asked if the US would reconsider past agreements like the one struck in 2020, Miran said each trading partner had its unique dynamics, but mechanisms like that should be kept on the table. He was also willing to entertain the possibility of Europe stepping in to help balance trade relationships, although he was tight-lipped about specific outcomes.
Despite his limited involvement in the negotiations, Miran couldn't help but point to Trump's knack for crafting deals that no one saw coming. While we don't have all the details yet, Miran's statements have sent crypto and equity markets surging. Notably, Bitcoin, guess where it's sitting? At the comfortable $97,000 mark and poised to test the $100,000 barrier in the near future. That's right, folks! After a bit of a tumble in early April when it slumped to around $75,000, it looks like Bitcoin is back with a vengeance.
The US-China Trade Tussle: What Does It Mean for Bitcoin?
The current trade tussle between the US and China, taking place in 2025, is characterized by record-breaking tariffs and unfolding negotiations, with notable implications for the global economy and Bitcoin prices.
The Current State of US-China Tariffs
- The US decorated Chinese imports with exceptionally high tariffs to the tune of 145%, while China fired back with triple-digit tariffs of its own on American goods[1].
- As of April 2025, the average effective tariff rate in the US shot up by about 25.6 percentage points pre-substitution, reflecting hefty 125% tariffs on certain Chinese goods[3]. Post-substitution (adjustments made to trade patterns), this increase moderates to about 15.6 percentage points because China's share of US imports fell from 14% to 3% as alternatives were found[3].
- Certain temporary suspensions and exemptions on tariffs exist for pharmaceuticals, electronics (including semiconductors), and mineral products, but sector-specific tariff measures are expected to climb in the coming months[2].
- Tariffs aren't the only weapon in the arsenal – both countries have mobilized non-tariff barriers, like China limiting imports of various US commodities and the US hiking docking fees for Chinese vessels[1].
- The US and China recently agreed to establish a new "trade consultation mechanism" to engage in discussions aimed at lowering trade friction. However, no immediate reductions have been announced[1].
Potential Future Developments
- Ongoing talks between the US and China might create a platform for tariff negotiations, potentially leading to tariff reductions or the easing of trade barriers if successful.
- Without any clear commitments or immediate action, tariffs remain elevated and could even rise further due to the announced sector-specific measures[2].
- The situation continues to evolve, with both countries attempting to apply pressure through tariffs and other trade tools. This makes the future outlook of tariffs uncertain but potentially volatile, depending on the progress of diplomatic negotiations.
The Impact on Bitcoin Prices
- Elevated tariffs and trade tensions between significant economies like the US and China can lead to economic uncertainty and market instability.
- This uncertainty often compels investors to seek secure havens for their moolah, like Bitcoin, which is often perceived as a shield against geopolitical and economic risks.
- The sustained trade tensions and tariff escalations could stoke demand for Bitcoin as a personal safe, sending its price rocketing. On the flip side, if successful negotiations stabilize trade relations and dilute uncertainty, reduced anxiety could lessen Bitcoin's protective appeal and tame upward price pressure.
- Furthermore, shifts in global supply chains and trade patterns caused by tariffs might influence investor sentiment and liquidity, impacting Bitcoin trading volumes and price volatility indirectly.
In essence, the US-China trade kerfuffle in 2025 is characterized by high tariffs, counter-tariffs, and tentative negotiations, leaving no immediate reductions on the horizon. The persistence or intensification of tariffs tends to heighten economic uncertainty, bolstering Bitcoin's appeal as an alternative asset for investors seeking safety. Conversely, successful negotiations that ease tariffs could mitigate this impact and steady Bitcoin's price sensitivity to trade-related economic factors[1][2][3].
- The potential tariff reduction between the US and China, as suggested by Steve Miran, could spark increased interest in alternative assets such as Bitcoin, due to their perceived safety in uncertain economic times.
- Bitcoin's price, currently hovering around $97,000, may see further increases if talks result in sustained trade tensions and elevated economic uncertainties, as investors continue to turn to cryptocurrencies as a safe haven.
- Interestingly, the cryptocurrency Initial Coin Offerings (ICOs) like Tron, DeFi platforms, and Decentralized Exchanges (DEX) might also benefit from this trend, as they too are often seen as secure investment options in times of economic turmoil.
- However, if political dialogues between the US and China result in trade normalization and reduced economic uncertainty, it could decrease the general appeal of cryptocurrencies, leading to potential price fluctuations.
- In the realm of digital finance and technology, these trade developments might profoundly affect the business landscape, potentially reshaping policy-and-legislation and politics surrounding the crypto industry.
- Given the multifaceted interplay between global finance, business, and technology, it is essential to closely monitor the US-China trade dynamic and its potential impact on various sectors, including the crypto market.
