U.S. and China tariff reduction boosts stock market by 1,100 points, cryptocurrency Bitcoin drops.
Markets Roar Back: U.S.-China Tariff Truce Sparks Stock Surge
prit, the Dow Jones Industrial Average soared over 1,100 points on Monday, marking a tremendous comeback following intense trade tensions. This surge was partly attributed to a shift in U.S.-China trade relations, as both nations agreed to reduce tariffs.
Several major sectors contributed to the rally, with tech and retail stocks, heavily exposed to China, leading the charge. Tesla, Apple, Amazon, Dell, and Best Buy all posted significant gains. The S&P 500, Nasdaq Composite, and Russell 2000 also saw notable increases of 3.25%, 4.34%, and 3.56% respectively.
High-stakes negotiations over the weekend in Geneva led to a dramatic cuts in U.S. tariffs on Chinese goods, dropping from a staggering 145% to a more manageable 30%. Simultaneously, China reciprocated by slashing retaliatory tariffs on U.S. imports from 125% to 10%.
Treasury Secretary Scott Bessent deemed the talks "very productive," hinting at potential further discussions within weeks. President Trump heralded the deal as a "total reset" of U.S.-China trade relations, emphasizing that a separate 20% tariff related to fentanyl enforcement would remain in place.
This sudden turn of events calmed the unsettled markets, which had been shaken since Trump's "Liberation Day" tariff escalation in April. Consequently, the Dow is now only showing a minimal loss of 0.32% or 134 points since the start of 2025, while the Nasdaq remains down more than 3%.
The tariff reduced will stay in effect for 90 days as both parties work towards a more comprehensive agreement. The U.S. Treasury reported a collection of $7.6 billion more in duties last month, underscoring the scale of the trade disruption.
Meanwhile, Bitcoin, the widely known digital currency, experienced a decline following the tariff suspension announcement. After reaching nearly $106,000 earlier in the day, Bitcoin fell 2.75% to $100,771. This drop suggests Bitcoin's stellar performance over the past few months may cool as broader markets catch up.
Dubai Makes History: Accepts Crypto for Government Service Payments
In groundbreaking news, Dubai announced it will begin accepting cryptocurrency for government service payments. This move makes Dubai the first government to adopt such a policy. The decision comes as part of a broader effort to bolster the United Arab Emirates' position as a leading player in the crypto and blockchain space.
- The Dow Jones Industrial Average's surge was observed not only in traditional stocks, but also in the crypto market, with Bitcoin, a widely known digital currency, experiencing a decline following the tariff suspension announcement.
- As Dubai accepts cryptocurrency for government service payments, it sets a precedent, becoming the first government to adopt such a policy. This move aligns with the United Arab Emirates' ambition to solidify its stance as a leading force in the crypto and blockchain sector.
- The decision to accept crypto payments in Dubai could have potential implications for the decentralized exchange (dex) market, as more government entities may consider adopting cryptocurrencies in the future.
- The Tron-based token, being part of the extensive crypto market, will be impacted by trends such as Dubai's adoption of crypto for government services, investing behavior in crypto post-tariff truce, and advancements in blockchain technology, thereby influencing its overall value and strategy in finance and investing.
