U.S. Considers Extending Tariff Suspension For Key Trade Partners

Summary:

Treasury Secretary Besent announced on June 12 that the U.S. may extend the 90-day tariff suspension for partners negotiating in good faith, stated in a hearing before the House Ways and Means Committee in Washington.

Key Points:

● U.S. weighs extending tariff suspension amid global trade talks.

● Short-term relief expected in financial markets.

● No immediate crypto disruptions linked to tariff news.

This potential extension aims to reduce trade uncertainty and stabilize markets. Market response has been calm, with no direct crypto impact reported.

U.S. Evaluates Extending Tariff Suspension Amid Key Trade Talks

U.S. Treasury Secretary Besent stated that the Trump administration might lengthen the tariff suspension, initially set for 90 days, beyond the July 9 deadline. The decision depends on whether major U.S. trade partners negotiate in good faith. The announcement came during a hearing at the House Ways and Means Committee, signaling an open stance amid complex global negotiations.

This development offers temporary market relief by reducing trade uncertainties. Analysts suggest such market-friendly gestures help stabilize trading conditions, supporting broader economic dynamics. The potential extension aims to facilitate continued dialogue with the 18 key trading partners mentioned by Besent, promoting ongoing negotiations without immediate financial disruption.

Market participants reacted cautiously. While stablecoin assets like USDT and USDC remain intricately tied to U.S. Treasury markets, the news did not trigger notable volatility. Analysts like Michaël van de Poppe view the broader economic climate positively, reflecting a bullish sentiment for digital assets given current stable macro conditions. As van de Poppe noted, “Bitcoin's recent breakout above the $106,500 resistance level triggered a swift move to $108,000, followed by a rapid retest that was aggressively bought up… confirming upward momentum in the current Bitcoin trend.”

Market Stability Despite Tariff Policy Speculation

Did you know? Previous tariff suspensions often led to interim periods of market calm, only to be followed by pronounced volatility upon deadline expiration or negotiation breakdowns, showing markets' sensitivity to policy timelines.

Tether USDt (USDT) holds a market cap of $155.20 billion and shows price stability with unchanged value at $1.00, reflecting a 0.00% price change over 24 hours (CoinMarketCap). The 24-hour trading volume decreased by 9.50%, aligning with maintained market stability amid current macroeconomic trends.

Tether USDt(USDT), daily chart, screenshot on CoinMarketCap at 00:26 UTC on June 12, 2025. Source: CoinMarketCap

Coincu research indicates that while crypto markets remain stable, future regulatory or financial shifts linked to tariff policies could affect crypto liquidity.

Source: CryptoSlate

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Olivia Brooks

Economic

Political

China–U.S. Trade War

U.S. President Donald Trump said on Wednesday that he will send letters to major economies setting his planned trade tariffs in the coming weeks, before a July 9 deadline to strike trade deals with his administration.

“At a certain point we’re just going to send letters out saying ‘this is the deal,’ you can take it or you can leave it,” Trump told reporters at the Kennedy Center.

“We’re going to be sending letters out in a week and a half to two weeks telling them what the deal is.”

Trump said talks were ongoing with Japan, South Korea, and about 15 countries.

It remained unclear whether Trump would make good on his tariff deadline, given that the president has set trade deadlines of two to three weeks in the past, only for them to pass either with no action or more extension.

When asked if he was willing to extend his July 9 deadline for trade talks, Trump said “I would, but I don’t think we’re going to have that necessity.”

Trump’s “liberation day” tariffs are set to take effect in early July, after the president initially unveiled them in April but announced a 90-day extension for trade talks. The president has threatened to impose steep tariffs on major U.S. trading partners unless they agree to a trade deal with the country.

So far, Trump’s administration has signed a trade deal only with the UK, and recently formed a trade framework with China.

Trump claimed on Wednesday that a trade deal with China was “done,” and that the U.S. had secured the supply of rare earths from the country. But more details on the deal were not provided.

Source: Investing

To stay updated on all economic events of today, please check out our Economic calendar

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Manuel

China–U.S. Trade War

Economic

The stock market has been encouraged by easing tensions between the US and China in recent weeks, but investors were largely unmoved by the announcement of a trade deal between the superpowers on Tuesday.

US stock futures failed to climb on news of the deal late Tuesday evening. While markets are edging higher on Wednesday, that's largely because the consumer price index report for May showed inflation was tamer than expected at 2.4% year-over-year.

On the trade front, observers say it's looking more likely that the trade war will shake out like it did during President Donald Trump's first term, with talk of constructive deals even as tensions remain elevated.

Simply put, investors see a long and winding path ahead, and knee-jerk reactions to trade announcements have largely subsided since the chaos of "Liberation Day" in April.

The framework agreement announced on Tuesday outlines how the two nations will continue trade talks. Importantly, it involves China allowing exports of rare earth minerals, while the US eases up on restrictions for exports of advanced tech to China, like semiconductors.

The reaction is far more muted than how the market reacted last month, when stocks popped after the US struck a rough framework deal with China that lowered tariffs between the nations for 90 days.

Art Hogan, the chief market strategist at B. Riley Wealth, told Business Insider that markets are reacting to trade talks similarly to when the US-China trade war first kicked off in 2018. He pointed to regular pullbacks in stocks during Trump's first term as traders digested the lack of progress in US-China negotiations.

"We still have that muscle memory from Trump 1.0, that dealing with China is difficult and there's a multitude of issues," Hogan said. "I don't think we're going to solve this in short order and likely never solve it in the longer term."

He added that markets are likely waiting for a more positive catalyst, pointing to more than 100 nations that have yet to strike a trade deal with the US.

Peter Berezin, the chief global strategist at BCA Research, said the framework made only small progress on negotiations with China.

"I would say that the 'deal' in London simply restores things to how they were right after Geneva," he told BI in an email. He added that he expected tariffs on China to remain high "for the foreseeable future."

Strategists at Deutsche Bank also said that tariff talks appear to mirror the 2018-2019 period, when the US and China didn't make much headway in resolving key issues.

Back then, the US said that China had unfair trade practices related to industries like agriculture and manufacturing. It also said China had unfairly transferred technology and stolen intellectual property from the US.

Deutsche Bank pointed out that the agreement announced Tuesday skipped over fentanyl-related tariffs that Trump implemented against China earlier this year.

"So while the mood music has stayed positive, investors may be wary of the pattern that emerged during the previous US-China trade talks in 2018-19," strategists wrote. "So there's perhaps a little disappointment this morning that we haven't yet got a bigger announcement."

The agreement also appeared to lack detail that markets were looking for, David Morrison, a senior market analyst at Trade Nation, wrote in a note.

"The big question is what kind of trade deals can the US negotiate that will be good enough to get the indices to fresh records?" he said.

US stocks have whipsawed this year amid the turmoil surrounding tariffs and incremental news of trade agreements between the US and other countries.

Indexes have erased their steep losses since the April 2 tariff announcements, with major averages now positive year-to-date.

Source: Business insider

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Olivia Brooks

Political

The US ordered some staff to depart the embassy in Baghdad and allowed military service members’ families to leave the Middle East, officials said, after Iran threatened to attack US bases if talks over its nuclear program fall through.

The decision to reduce staffing in Iraq was “based on our latest analysis,” according to the State Department. Defense Secretary Pete Hegseth authorized family members of US military stationed across the region to leave, according to a Pentagon statement.

Neither statement cited a specific threat but the New York Post published an interview in which President Donald Trump said he’s growing less confident about the prospects for negotiations to impose new limits on Iran’s nuclear program. Iran, meanwhile, warned of retaliation against US military assets in the Middle East if the talks collapse and the Islamic Republic is attacked.

“I sincerely hope it won’t come to that and that the talks reach a resolution,” Iran’s Defense Minister Aziz Nasirzadeh said in televised remarks. “But if they don’t, and conflict is imposed on us, the other side will undoubtedly suffer greater losses. We will target all US bases in host countries without hesitation.”

West Texas Intermediate futures surged as much as 5.2% after Reuters reported earlier that the US embassy is preparing for an ordered departure in response to heightened security risks in the region. Iraq is the second-largest OPEC producer.

Earlier in the day, the UK Navy issued a rare warning to mariners that higher tensions in the Middle East could affect shipping, including through the Strait of Hormuz. Shipping has often been risky in the Middle East, but UKMTO, which acts as a liaison between the navy and commercial shipping, rarely puts out general warnings such as this one.

“UKMTO has been made aware of increased tensions within the region which could lead to an escalation of military activity having a direct impact on mariners,” the advisory said. “Vessels are advised to transit the Arabian Gulf, Gulf of Oman and Straits of Hormuz with caution.”

The Joint Maritime Information Center, an information sharing hub that comes under the Combined Maritime Forces, warned of heightened risks from the discord, including the possible use of missiles around chokepoints.

Source: Yahoo Finance

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Manuel

Cryptocurrency

Stocks

GameStop Corp. plans to raise $1.75 billion through a private offering of convertible senior notes due 2032, as the company explores digital asset investments, including potential Bitcoin acquisitions, under its updated investment strategy, according to a June 11 press release.

The zero-coupon notes will be offered to qualified institutional buyers under Rule 144A of the Securities Act, with an option for initial purchasers to buy an additional $250 million within 13 days of issuance.

The unsecured notes will not bear interest, will not accrete, and will mature on June 15, 2032, unless converted, redeemed, or repurchased earlier.

GameStop said it may settle conversions in cash, stock, or a combination. The conversion rate and other final terms will be determined at the time of pricing.

Bitcoin treasury accumulation

While GameStop did not disclose specific investment targets, it stated that proceeds will be used for “general corporate purposes,” including acquisitions and investments aligned with its Investment Policy, which permits the company to allocate capital to Bitcoinand other blockchain-based assets.

The move echoes similar strategies by companies such as MicroStrategy, which used convertible debt to amass over 200,000 BTC, turning the cryptocurrency into a strategic treasury reserve.

Market speculation around GameStop’s potential Bitcoin exposure has grown in recent weeks, particularly after executive reshuffles and broader engagement with the digital asset space.

The firm previously raised $1.3 billion through another convertible note offering, which led to an acquisition of 4,710 BTC for its treasury last month.

GameStop has previously hinted at ambitions beyond retail gaming, exploring digital wallets, NFTs, and decentralized infrastructure. This latest financing round could give the company additional flexibility to pursue a more aggressive pivot toward blockchain-related assets or technologies.

Limiting immediate dilution

The offering allows GameStop to raise capital without immediate shareholder dilution. However, future conversions of the notes into equity could increase the outstanding share count.

The company retains the flexibility to settle in cash, which may limit dilution depending on stock performance at the time of conversion.

The notes and any shares issuable upon conversion will not be registered under federal securities laws and may not be publicly offered or sold in the US without an exemption.

GameStop shares slipped slightly in after-hours trading following the announcement, indicating that investors remain skeptical of its investment plans for now.

Source: Cryptoslate

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Manuel

Commodity

Energy

Oil prices rose as a U.S.-China trade deal and soft inflation report boosted demand expectations while concerns about political instability in the Middle East sparked fears of supply disruptions.

West Texas Intermediate futures contracts, the U.S. crude oil benchmark, rose as much as 5.2% on Wednesday to trade above $68 a barrel for the first time since April 2, when President Trump’s "Liberation Day” tariff announcement pulled prices lower.

Prices surged in afternoon trading amid reports that the State Department had ordered the departure of all nonessential personnel at the U.S. Embassy in Baghdad to address security concerns amid mounting tensions in the Middle East.

Oil prices had risen earlier in the session after the U.S. and China agreed to a trade deal that eased fears about the economic fallout of a protracted trade war between the world’s two largest economies. A soft inflation report added to Wall Street's optimism about demand.

The energy sector led stock market gainers on Wednesday. Oil companies were up, with Occidental Petroleum (OXY) gaining 2% and ConocoPhillips (COP) both finishing up more than 2%. Read Investopedia's full coverage of today's trading here.

Crude oil prices slumped to about $57 per barrel in early May, their lowest level since early 2021, after the Organization of Petroleum Exporting Countries and its allies agreed to boost production in June. Energy markets were on edge even before OPEC announced the supply increase: U.S.-China trade had effectively come to a standstill after the countries increased tariff rates on each other’s goods to more than 100%, threatening to slow global growth and weigh on oil demand.

Prices began to rebound in mid-May after the U.S. and U.K. agreed to a trade deal framework, giving Wall Street confidence that tariff rates would eventually settle below the levels announced in April. Oil's rebound picked up pace in early June when OPEC lifted its production targets by less than investors expected.

Source: Reuters

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Manuel

Commodity

Energy

JERA, Japan's biggest power generator, has agreed to new supply deals for U.S. liquefied natural gas (LNG) from four projects to diversify its global portfolio away from its reliance on Australia, it said on Thursday.

JERA plans to buy up to 5.5 million metric tons per annum (mtpa) of U.S. LNG under 20-year contracts, with deliveries starting around 2030. That total includes some previously reported deals as well as newly announced agreements.

The move illustrates Japan's efforts to seek stable and flexible LNG supply to strengthen energy security and meet growing electricity demand driven by expanding data centres. The country is the world's second-largest LNG importer after China.

JERA, Japan's biggest LNG buyer, has signed a heads of agreement with Sempra Infrastructure for 1.5 mtpa from its Port Arthur LNG phase 2 project and a HOA with Cheniere Marketing for up to 1 mtpa from Corpus Christi LNG and Sabine Pass LNG.

The Japanese utility also signed a 20-year sales and purchase agreement (SPA) with U.S. LNG developer Commonwealth LNG for 1 mtpa from its Louisiana project. On Tuesday, sources familiar with the negotiations told Reuters about the deal though both companies declined to comment at the time.

The 5.5 mtpa figure also includes its deal announced on May 29 with NextDecade to buy 2 mtpa from its Rio Grande LNG project.

All four are 20-year, free-on-board contracts with no destination restrictions, although the Cheniere deal could go beyond 20 years, JERA said.

"We made these decisions because cost-competitive and flexible LNG is essential as we look towards the 2030s," JERA's Global CEO and Chair Yukio Kani told Reuters.

He added that LNG has become increasingly important amid rising power demand from data centres and the soaring costs of cleaner alternatives like hydrogen and ammonia.

"We were also aiming to secure contracts with the projects already under development and tied to the EPC (engineering, procurement, and construction) agreements before the recent surge in LNG project costs and interest rates," he said.

The announcement comes amid ongoing trade talks between Japan and the United States, though Kani stressed there was no government pressure behind the deals which he said were purely private sector decisions.

"We are rebalancing towards the global supply mix," he said, to reduce its weighting toward Australia.

After the new deals, the U.S. will supply nearly 30% of JERA's LNG mix, up from 10% now. Oceania and Asia, including Australia, currently account for more than half.

JERA, jointly owned by Tokyo Electric Power and Chubu Electric Power, already buys U.S. supply from Freeport LNG and Cameron LNG. In 2023, it signed a 20-year contract to buy 1 mtpa from Venture Global's CP2 project.