U.S. Treasury Secretary Scott Bessent announced Sunday that the United States and China have made “substantial” progress on a trade framework that could ease tariffs and reignite global market optimism.
Bessent said the proposed deal would eliminate the need for the 100% additional tariffs announced by President Donald Trump on October 10.
“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 said.
Trade Tensions Ease Ahead of APEC Summit
The announcement comes ahead of a scheduled meeting between President Trump and Chinese President Xi Jinping at the Asia-Pacific Economic Cooperation (APEC) summit on October 31.
Trump had previously said there was “no reason” to meet with Chinese representatives, sparking fears of an extended trade war.
The breakthrough now signals a significant step toward stabilizing U.S.-China relations, with crypto and equity markets responding positively.
Crypto Market Reacts Positively
Following Bessent’s statement, Bitcoin rose 1.8% to $114,803, Ether gained 3.6% to $4,170, and Solana climbed 3.7% to $200.39.
The rally reflects how sensitive digital asset markets remain to global trade developments.
Trump’s earlier tariff threats had sparked a crypto market sell-off earlier this month, with several tokens losing nearly all their value within 24 hours.
Analysts Expect Stronger Risk Appetite
Jeff Park, an advisor at Bitwise, predicted that the progress in trade negotiations would push Bitcoin and gold toward new all-time highs.
“Asset prices will get crazy this week if the US-China trade deal is announced and the Fed cuts interest rates. Buckle up,” investor Anthony Pompliano said.
With the Fed expected to cut rates soon, optimism over global trade could further fuel risk-on sentiment across both crypto and traditional markets.