Last week, the deadline given by Trump to Russia came to an end. Meanwhile, heavy tariffs on China and India were set to be announced by the end of this week. In a positive turn, European officials and representatives from China held constructive discussions about tariffs and TikTok. Recent statements by the Treasury Secretary have been supportive, and there are encouraging signals in favor of cryptocurrencies.
U.S. Treasury Secretary’s Announcements
Tariffs suggested by the U.S. to deter Russia will likely be effective when applied in collaboration with its partners. Recently, the U.S. proposed to the EU that such actions should be taken together. Discussions included the difficulties that China and other Russian allies may encounter. The repercussions, however, were expected to be felt on both sides.
The U.S. Treasury Secretary stated the following:
Unless European countries implement similar measures, the U.S. will not impose customs duties on Chinese goods for purchasing Russian oil. It is imperative for European countries to take steps to halt the flow of Russian oil revenues.
The U.S. is prepared to implement stronger sanctions on Russia, including major oil companies, and to further utilize frozen Russian assets.
A threat to close TikTok led Chinese negotiators to reach a framework agreement for divestment. Initially, the Chinese delegation demanded compensation for the sale of TikTok through customs duties and export control concessions.
Upcoming U.S.-China negotiations could result in extending the tariff truce by another 90 days, potentially occurring before the November 10 deadline.
These revelations imply that the U.S. will announce new sanctions that may cause shockwaves after the EU discloses their decisions. The EU is already grappling with U.S.-imposed tariffs, and it remains to be seen whether confronting China and others over Russia will prove beneficial.
In summary, threats of additional 100% customs duties remain unresolved, allowing Russia some breathing room. Similar sentiments apply to risk markets, including cryptocurrencies, as such large-scale sanctions might have negative repercussions in risk markets.
BTC stays above $114,500, with attention focused on the upcoming interest rate decision and dot plot charts for this Wednesday.
