US and EU-China Trade Talks Aim to Ease Tensions Boost Market
US and EU-China trade talks are converging in July to extend tariff truces and resolve disputes with Beijing. The US will hold its third round in Stockholm on July 29–30, building on May’s Geneva and June’s London meetings to extend the tariff pause set to expire August 12, press China to reduce the trade deficit, increase US goods purchases and curb sanctioned oil imports and fentanyl precursors. Meanwhile, EU leaders Ursula von der Leyen and António Costa will meet Xi Jinping in Beijing to tackle over 25 ongoing tariff investigations—from electric vehicles to tyres—address economic coercion and rare earth supply concerns. Both sides seek access to advanced tech—semiconductors and AI chips—and aim to maintain dialogue amid geopolitical friction over Russia and supply‐chain security. Crypto traders should watch these “trade talks” trends: easing tensions often drives a risk-on environment and boosts market sentiment, potentially lifting the cryptocurrency market in both the short and long term, though outcomes hinge on concrete trade and technology commitments.
Bullish
Both US and EU-China trade talks aim to extend tariff pauses, reduce trade deficits, and open technology access, fostering a risk-on environment that historically lifts cryptocurrencies. In the short term, positive signals—like paused tariffs and mutual export-control relaxations—can trigger immediate crypto inflows. Over the long term, substantive trade commitments and clearer supply‐chain rules enhance investor confidence, supporting sustained market growth and volatility dampening, which favors bullish crypto momentum.