U.S. and China Slash Tariffs in 90-Day Trade Truce Markets Surge

In a major breakthrough to ease long-standing trade tensions, the United States and China have agreed to a 90-day mutual tariff reduction, effective immediately.

Key Highlights of the Agreement:

• 🇺🇸 U.S. tariffs on Chinese imports have been reduced from 145% to 30%
• 🇨🇳 China’s tariffs on American goods have been cut from 125% to 10%
• 📍 The agreement was brokered during high-level talks in Geneva

Market Reaction: Strong Optimism

Global markets surged on the news, signaling renewed investor confidence:

• 📈 Dow Jones jumped 1,161 points
• 📊 S&P 500 rose 3%
• 💹 Nasdaq Composite climbed 3.5%

Chinese tech stocks also rallied, with Alibaba and other major firms seeing sharp gains.

What’s Next? A Crucial 90-Day Window

While this truce marks a significant de-escalation in trade tensions, analysts caution that the next 90 days will be pivotal. Negotiators will work toward a more permanent agreement, focusing on unresolved issues such as technology transfers, IP protections, and supply chain transparency.