The United States and China have agreed to extend their tariff truce by 90 days following negotiations in Stockholm between U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng. This extension, confirmed on July 27, 2025, postpones potential tariff escalations that were initially set to expire on August 12, 2025. Secretary Bessent stated, "Both parties are committed to maintaining a dialogue that prevents further escalation of tariffs and trade restrictions," adding that discussions would broaden to include topics like China's oil purchases from Russia and Iran.
The agreement provides immediate relief to export-focused industries and stabilizes global equity markets by reducing trade tension risk premiums. Historically, such truces have shown limited direct impact on core cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH), though they typically bolster risk-on assets. Market analysts note reduced trade friction could improve overall investor confidence, potentially benefiting cryptocurrencies as alternative investments during periods of economic uncertainty.