Trump’s Tariff Threats: A Trade Deal or Just More Drama?

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United States Treasury secretary Scott Bessent, with the air of a man who’s just discovered a new way to fold a shirt, declared on Sunday that the US and China have achieved “substantial” progress on a trade deal framework, sparking investor hopes of a bull market revival. 🤷‍♂️

The proposed trade framework, which may or may not be a temporary truce, will likely remove the 100% additional tariffs announced by President Trump on October 10, Bessent said. He added, with the enthusiasm of a man who’s never been wrong: “President Trump gave me a great deal of negotiating leverage with the threat of 100% tariffs on November 1, and I believe we have reached a very substantial framework that will avoid that and allow us to discuss many other things with the Chinese.” 😏

Bessent’s comments follow weeks of easing trade tensions between the two countries, culminating in President Trump confirming the meeting with China’s President Xi Jinping at the APEC summit on October 31. One can only imagine the diplomatic tea party that awaits. 🍵

President Trump previously said there was “no reason” to meet with representatives from China, sparking investor fears of a new protracted trade war. “No reason?” one might ask, “What about the entire global economy?” 🤔

Crypto investors, traders, and industry executives celebrated the trade framework like it was a religious holiday, as crypto markets experienced a modest rally on the positive news. “Finally,” they sighed, “a reason to stop crying over lost NFTs.” 🎉

Crypto markets rally as traders and investors celebrate trade framework

Crypto markets, those fickle lovers, are sensitive to trade war developments, rallying when news is positive and declining when trade tensions erupt or global trade is disrupted. A true test of loyalty, if you’ll excuse the metaphor. 💸

President Trump’s social media post on October 11, announcing additional 100% tariffs on China, ignited a crypto market meltdown that saw some crypto tokens lose up to 99% of their value in 24 hours. “This is why we can’t have nice things,” muttered a shaken investor. 😭

Bitcoin (BTC) rallied by a modest 1.8%, Ether (ETH) pumped by 3.6%, and SOL (SOL) rose by 3.7% following Bessent’s announcement on Sunday. “Modest” being the key word here, of course. 🚀

Jeff Park, an advisor at investment company Bitwise, said the positive trade deal news will send BTC and gold to new all-time highs. “New all-time highs?” one might reply. “Or just the usual cycle of hope and despair?” 🌀

“Asset prices will get crazy this week if the US-China trade deal is announced and the Fed cuts interest rates. Buckle up,” investor and analyst Anthony Pompliano also said. “Buckle up,” he said, as if the world wasn’t already spinning fast enough. 🌀

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2025-10-26 20:40