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2w ago

US-China Agree to 90-Day Tariff Truce, Markets Surge

The agreement slashes US tariffs on Chinese imports to 30% and China's tariffs on US goods to 10%, fueling optimism but leaving long-term trade issues unresolved.

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Stock markets opened for the first time on Monday since the India-Pakistan ceasefire understanding.
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Overview

  • The United States and China reached a 90-day agreement to reduce reciprocal tariffs after negotiations in Geneva, with US tariffs cut from 145% to 30% and China's from 125% to 10%.
  • Global markets responded positively, with the Dow Jones Industrial Average rising nearly 1,100 points and the S&P 500 climbing 3%, regaining levels seen before April's tariff hikes.
  • Crude oil prices jumped over 3%, and Treasury yields rose as investors shifted away from safe-haven assets, reflecting improved economic sentiment.
  • Federal Reserve rate cut expectations have shifted, with investors now predicting the first reduction to occur in September rather than June.
  • Analysts view the truce as a temporary negotiation tactic, noting that systemic trade imbalances and strategic tensions between the US and China remain unresolved.