Overview

• The U.S. reduced tariffs on Chinese imports from 145% to 30%, while China lowered its duties on U.S. goods from 125% to 10%, effective for 90 days.
• Global stock markets surged initially, with U.S. indices gaining over 3% on May 12, though optimism waned slightly by May 13.
• Treasury Secretary Scott Bessent announced the tariff reductions following intensive negotiations in Geneva, emphasizing the need for continued dialogue.
• The truce has delayed expectations for Federal Reserve rate cuts, with investors now anticipating the first cut in September instead of July.
• Core issues like technology transfer, market access, and national security remain unresolved, with experts warning the pause is only a temporary reprieve.