The White House says “substantial progress” has been made in trade negotiations with China, but investors are holding back celebration as details remain scarce.
In a joint statement issued on May 11, Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer described the two-day discussions in Geneva as “productive,” with a promise to release more information on May 12. However, neither official used the term “deal” nor offered specifics regarding concessions or agreed-upon terms.
“I am happy to report that we made substantial progress,” Bessent said. Greer echoed the sentiment but stopped short of elaborating on any concrete outcomes.
“We will be giving details tomorrow, but I can tell you that the talks were productive,” he added.
The vague language has left investors cautious, with many questioning whether the optimism is justified or merely diplomatic posturing. As markets wait for more clarity, the lack of deliverables continues to fuel skepticism about how close the two economic superpowers truly are to reaching a meaningful agreement.
Markets Reel from Tariff Volatility as Trump Administration Sends Mixed Signals
Although both traditional and crypto markets have staged a modest recovery from earlier shocks, investor sentiment remains fragile amid unpredictable trade policy from the Trump administration.
Since returning to office, President Trump has reignited his aggressive tariff campaign, upending global markets with sweeping import duties. The volatility has been further exacerbated by inconsistent messaging and sudden reversals. In one notable example, U.S. Customs and Border Protection announced in April 2024 a temporary suspension of tariffs on key tech imports—including smartphones, semiconductors, and computers. But within 24 hours, Commerce Secretary Howard Lutnick reversed the decision, citing the need to finalize a broader framework with sector-specific tariff tiers.
This policy flip-flop spooked markets and reignited concerns about the administration’s broader economic vision. Critics argue that the lack of consistency undermines investor confidence, particularly in high-risk sectors like tech and crypto, which are especially vulnerable to sudden policy changes.
As the administration attempts to recalibrate its approach, ongoing uncertainty threatens to do more harm than good, potentially eroding trust and hampering long-term market stability.
Market Response: Cautious Optimism Amid Uncertainty
Despite the ambiguity, financial markets responded positively to the announcement of progress in U.S.-China trade talks.
Brent crude rose 27 cents to $64.18 per barrel, while U.S. West Texas Intermediate crude gained 28 cents to reach $61.30. Stock futures also moved higher, with the Dow Jones Industrial Average leading gains as investors priced in hopes of a de-escalation in trade tensions. Meanwhile, the crypto market has remained in good mood with bitcoin hovering around the $104,000 zone while Ethereum continued its upwards trend.
Market watchers are particularly focused on whether a resolution could lead to the easing of steep tariffs currently imposed by both nations—measures that have weighed heavily on global economic outlooks.
Still, without concrete details, investors remain cautious. The crypto sector, in particular, continues to monitor the situation closely, given the potential implications of trade policy shifts on risk asset positioning.
Quick Facts
- The U.S. and China reported “substantial progress” following two days of trade talks in Geneva, with more details expected on May 12.
- Oil and stock markets responded positively, driven by hopes for easing trade tensions.
- The Trump administration continues to impose a minimum 10% tariff on foreign imports, with further negotiations underway.
- Crypto investors remain alert to trade developments, which could impact digital asset performance and strategy.
