Yeliz Akmaca 
U.S. President Donald Trump and Chinese President Xi Jinping signed a critical 1-year trade agreement in South Korea. The deal includes cooperation on rare earth elements and strategic minerals. This development eased tariff concerns and pushed Bitcoin above $111,000, showing a strong V-shaped recovery.
Fentanyl Tariffs and Nvidia Chip Restrictions
After the meeting, Trump announced a reduction in overall tariffs on China from 57% to 47% and immediately lowered the fentanyl tariff to 10%. These measures alleviated long-standing investor fears over “tariff shock.”
China also agreed to suspend planned export restrictions on rare earth elements, mitigating short-term supply chain risks and production costs. Furthermore, China indicated it would discuss Nvidia chip export restrictions, while strategic raw material flows were secured.
Rare Earths and US-China Cooperation on Ukraine
The U.S. and China reached a 1-year trade deal on rare earth elements, crucial for electric vehicles, chip production, and defense industries. Trump described the agreement as “the world’s problem solved.” Additionally, both countries agreed to cooperate on Ukraine, aiming to reduce both commercial and geopolitical risks.
The deal will be renegotiated annually, with Xi visiting the U.S. and Trump visiting China in April 2026. This cooperation is vital not only for trade but also for global tech competition and supply chain security.
Trump’s Asia Tour: A New Trade Era
Trump’s Asia tour also covers trade talks with Japan, South Korea, and Canada, with signals of a forthcoming agreement with India. This aligns with the U.S.’s strategy to restore economic influence in the Asia-Pacific region.
The U.S. and China also agreed on diplomatic cooperation regarding the Russia-Ukraine conflict, potentially reducing global tensions.
Bitcoin Tops $110K: Crypto Market V-Shaped Recovery
Following the Trump-Xi trade deal, the crypto market rebounded sharply. Bitcoin (BTC) traded between $107,957 and $113,642 during the day, reclaiming the $111,000 level.
Other major cryptocurrencies also gained over 1%: Ethereum (ETH), XRP, BNB, Solana, Dogecoin, and Cardano. BTC trading volume remained stable with a 2% increase in the last 24 hours. Analysts predict a potential retest of $120,000 in November.
Elon Musk and Powell Effect
Short-term crypto market fluctuations were influenced by two factors:
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Elon Musk’s SpaceX executed a third large-scale BTC transfer.
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Fed Chair Jerome Powell maintained a “hawkish” stance on interest rates.
While some investors remained cautious, the macro optimism from the Trump-Xi agreement dominated market sentiment.
Conclusion
The 1-year trade deal between Trump and Xi Jinping could mark a historic turning point not only for U.S.-China relations but also for the global economy and crypto markets. Tariff relief has restored investor confidence, allowing Bitcoin to surpass $110,000 and signaling a period of reduced geopolitical uncertainty and increased risk appetite.