- China said it will suspend the extra 24% tariff on U.S. goods from Nov. 10, triggering a fast risk-on response in crypto.
- Bitcoin rebounded about 3% to near $101,771 after the announcement, keeping price back above the six figure zone.
- Beijing will still keep a 10% levy and some agricultural taxes, so traders see this as an easing signal, not a full reset.
The Chinese government has announced it will suspend the 24% additional tariffs currently imposed on US goods. The State Council’s tariff commission confirmed the policy change will take effect on November 10. This move marks a significant effort to de-escalate the ongoing economic conflict with the United States.
Related: Crypto Bull Run: Analyst Spots a Trend Led by the US-China Tariff War Resolution
Bitcoin Rallies on Easing Tensions
Analysts anticipate this policy shift will catalyze a broader market recovery. Risk assets, particularly cryptocurrencies, have faced significant macroeconomic pressure for months and will benefit from this de-escalation.
Related: Markets Edge Higher on US-China Tariff News and a Bitcoin vs Tokenized Gold Showdown
Bitcoin immediately responded to the announcement early Wednesday. The asset rallied 3% to reclaim the $100,000 psychological level, trading at $101,771 at press time.
Partial Relief: The 10% Levy Remains
While suspending the 24% bracket, Beijing will maintain its 10% “retaliatory tariffs.” These were originally introduced as a direct response to US President Donald Trump’s “Liberation Day” duties. The commission noted it will specifically remove the tax of up to 15% imposed on certain US agricultural goods by the November 10 deadline.
Although most observers consider the latest development a positive move toward easing the existing pressure on the market, Chinese traders buying soybeans from the US would still face 13% tariffs, in addition to a preexisting 3% tariff. The traders consider that it is still on the high side, making US shipments more expensive for commercial buyers compared to alternatives from Brazil.
Hope Returns Among Investors
Despite the complaints, the latest review by the tariff commission is bound to spur the market and trigger significant relief from prolonged pressure, according to analysts. Most investors expect China’s latest move, alongside a complementary tariff adjustment from the US, to act as a catalyst for market recovery.
It is worth noting that optimism returned to the market last week, following the US President Donald Trump’s meeting with his Chinese counterpart in South Korea. China has followed up with moves to ease tariffs on US goods, while investors expect a similar gesture from the US, as both parties move to end the trade war that has hurt the global market for several months.
In the meantime, China’s state-owned COFCO bought three US soybean cargoes last week, leading investors to believe the Asian giant is signalling its willingness to end the trade war.
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Source: https://coinedition.com/china-suspends-24-percent-us-tariff-bitcoin-reclaims-100k/
