- Trump reignites U.S.-China trade tensions with tariff threats, then abruptly resumes talks, shaking global markets.
- His public accusations of China’s deal violations sparked sharp drops in equities and crypto.
- A high-stakes U.S.-China meeting in London is set for Monday, aiming to salvage the trade agreement.
- Bitcoin and crypto markets remain volatile, increasingly tied to geopolitical uncertainty.
U.S. President Donald Trump has once again stirred the global markets by reigniting trade tensions with China, only to announce a sudden diplomatic thaw just days later.
Last week, Trump took to Truth Social to accuse Beijing of flagrantly violating the terms of a previously celebrated trade deal. Now, in a dramatic reversal, the former president has declared that negotiations are back on, with top U.S. officials heading to London for renewed talks.
“The meeting should go very well. Thank you for your attention to this matter!” Trump wrote, signaling optimism amid a storm of uncertainty.
According to Trump, Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Trade Representative Jamieson Greer will meet with Chinese counterparts on Monday in London to “put the deal back on track.”
Trump Accuses China of Breaking Trade Deal
In early April, the Trump Administration launched a series of sweeping tariffs targeting Chinese imports, a move met swiftly with retaliatory duties from Beijing. Tensions soared, but global markets breathed a collective sigh of relief last month when the White House unveiled a temporary agreement with China that paused and even rolled back many of those tariffs.
The deal sparked a rapid rally in equities and bolstered investor confidence, with crypto markets riding the wave of renewed optimism in global trade stability. However, the détente proved short-lived.
Just a week ago, Trump lashed out at China on his Truth Social platform, accusing the Chinese government of violating the hard-won agreement.
“I made a FAST DEAL with China to save them from what I thought was going to be a very bad situation,” Trump posted. “The bad news is that China, perhaps not surprisingly to some, HAS VIOLATED ITS AGREEMENT WITH the US. So much for being Mr. NICE GUY!”
The post sent shockwaves through financial markets, including crypto, as investors braced for a potential re-escalation of the trade war that had previously rattled global supply chains and digital asset valuations.
Bitcoin Reacts to Renewed Trade Uncertainty
While the Trump administration’s tough stance on trade has historically impacted traditional financial markets, the knock-on effects in crypto are becoming increasingly visible. As institutional investors use Bitcoin and other cryptocurrencies as hedges against macro volatility, trade uncertainties especially between the world’s two largest economies now ripple through digital asset pricing with greater intensity.
The renewed dialogue between the U.S. and China may offer temporary market relief, but the underlying unpredictability remains a source of investor anxiety.
For now, the world watches London, where Monday’s high-stakes meeting could either revive hopes for economic cooperation or reignite another round of tariff-fueled chaos.
The trade tango between the U.S. and China continues, and crypto markets are dancing to the rhythm. Whether this week’s talks bring harmony or more discord remains to be seen.
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