- Lark Davis has downplayed the potential impact of China’s retaliation against the US.
- China’s imports from the US are relatively insignificant.
- Investors are paying attention to the US-China trade war.
Renowned Bitcoin investor Lark Davis has downplayed the potential impact of China’s retaliatory move against the US by threatening to impose tariffs in a brewing trade war. In a recent post on X, the analyst noted that the volume of oil China imports from the US is insignificant, and a tariff on that will have no crucial effect on US trades.
US-China Trade Dynamics
According to Davis, the US ranked 10th among the countries supplying oil to China. The Chinese government imported 6% of its LNG from the US and claimed four million tons of US oil exports out of 87 million tons in 2024.
Most of China’s oil imports came from Russia and Asia, with the UAE ranking 4th among its suppliers. Thus, Davis said the situation in China did not hold the same weight as that of Mexico and Canada, two countries of significant commercial importance to the US.
Related: Crypto Market Recovers Sharply: Tariff Concerns Easing
China, Mexico, and Canada were the countries President Donald Trump sanctioned with tariffs over the weekend. Trump’s policy shook both the mainstream and digital assets sectors, as US stocks and crypto prices plunged. Mexico chose to negotiate with the US, and Trump subsequently paused the situation between the two nations.
Market Reactions & Negotiations
Meanwhile, China took another route that did not involve straightforward negotiation in resolving the issue with the US. The Asian giant has hit back by choosing to impose new taxes on imports from the US. However, analysts think China’s move is to open a negotiation channel, considering the new tax regime will take effect from February 10.
Although Davis considered a potential sanction from China insignificant, the crypto market appeared to show a different picture. Crypto prices halted their recovery after China announced its countermeasures, with Bitcoin dropping below $100,000 after rising above $102,000 on Monday.
Related: Market Meltdown: $2.24 Billion Wiped Out, But Bitcoin Finds Its Feet
Leaders from the US and China will discuss later this week to finalize the trade situation. Meanwhile, China’s other trade partners like the UAE and investors are observing to know the outcome of their decisions and how they will affect the markets.
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