It was declared by the White House that negotiations between the United States and China concerning a trade agreement have achieved “substantial progress.” However, no formal deal has been confirmed thus far, resulting in continued uncertainty among investors.
Though progress was claimed by the White House, no formal details regarding an agreement were disclosed, leading to skepticism surrounding the reported deal.
As stated in a May 11 announcement by the White House, additional information regarding the trade discussions and the proposed “agreement” is scheduled to be disclosed on May 12.
A joint statement with U.S. Trade Representative Jamieson Greer included Treasury Secretary Scott Bessent’s remarks, in which it was reported that significant advancement had been achieved in the crucial trade negotiations between the United States and China.
Further details were promised for release the following day, as Bessent noted that the discussions had been productive, though the term “deal” was notably omitted from his remarks.
The deal was briefly referenced by Greer, though no specifics regarding the discussions were provided, resulting in uncertainty among investors. Market participants have continued to observe the persistent trade tensions closely, hoping for indications of easing that could benefit financial markets.
Trump’s Tariffs Disrupt Markets and Spark Broad Criticism
Despite a partial recovery in both traditional financial and digital asset markets—retracing some of the losses triggered by the initial price shock resulting from U.S. President Donald Trump’s broad trade tariffs—investor uncertainty continues to cast a shadow over asset markets.
Frequent shifts in tariff policies have been made by the Trump administration, with trade proposals being reversed or rhetoric softened on multiple occasions. As a result, heightened caution has been observed among investors, creating uncertainty around committing to high-risk assets such as technology stocks and cryptocurrencies.
In April 2024, a tariff exemption for specific tech products—such as smartphones, processors, computers, and various electronics—was announced by the U.S. Customs and Border Protection, acting on directives from the Trump administration.
The electronic tariff exemptions were rescinded by U.S. Commerce Secretary Howard Lutnick just one day after the initial announcement had been made.
It was stated by Lutnick that the tariff exemptions would remain in effect only temporarily, until a comprehensive tariff framework—incorporating varied tariff rates across different economic sectors—was finalized by administration officials.
The absence of a clear and comprehensive trade strategy has led to the Trump administration’s plans being questioned, with numerous analysts suggesting that the imposed trade tariffs are likely to generate further instability within financial markets and the wider economy.
