Raoul Pal, founder and CEO of Global Macro Investor, suggests that the ongoing tariff negotiations led by US President Donald Trump are fundamentally aimed at reaching an agreement with China. With escalating trade tensions impacting both stock and cryptocurrency markets, Pal indicates that Trump's recent imposition of new tariffs, which includes a 10% baseline on all imported goods and a 34% tariff specifically on Chinese imports, is part of a broader strategy. Despite the tariffs, Pal believes these moves represent negotiation posturing rather than an intention to escalate trade conflict. He notes that both nations recognize the critical value of reaching a deal, with the US needing tariffs to facilitate negotiations, while China seeks to weaken the US dollar. In retaliation to US tariffs, China has also imposed substantial tariffs on US imports, emphasizing the contentious nature of these negotiations. Analysts suggest that a resolution could lead to a recovery in digital asset markets, which are closely monitoring developments in the trade dispute.

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