US & China agree to cut tariffs for 90 days in bid to defuse trade war
The US-China trade deal has increased the headache for Indian negotiators, who are once again headed to Washington DC to discuss the proposed bilateral trade deal.While signalling movement towards a deal between the world’s two largest trading nations, the 90-day truce, which will see them slash tariffs by 115 percentage points, opens the door for the flow of goods from China. As a result, some of the interest in Indian products is bound to come down as supply lines will reopen for 90 days, apart from some front-loading of consignments in case the pause is not extended.
US stocks surge on tariff de-escalation, S&P 500 up more than 3%
Wall Street stocks finished solidly higher Monday, cheering an announcement that the United States and China sharply de-escalated a trade war that has rattled global markets.
The Dow Jones Industrial Average jumped 2.8 percent to close at 42,410.10.
The broad-based S&P 500 rallied 3.3 percent to 5,844.19, while the tech-rich Nasdaq Composite Index rocketed 4.4 percent to 18,708.34.
Dow jumps 1,079 points and S&P 500 climbs 3.1% following a 90-day truce in the US-China trade war
Global markets surged on Monday following the announcement of a 90-day ceasefire in the trade dispute between China and the United States. Both economic powerhouses agreed to temporarily reduce most reciprocal tariffs, addressing concerns from economists about potential recession risks and possible retail supply disruptions in the United States.
Trading showed significant gains, with the S&P 500 rising 3.1% during afternoon trading, positioning itself within 5% of its February peak. The index has shown strong recovery since its recent 20% decline, buoyed by optimism surrounding President Donald Trump’s potential tariff reductions following successful international trade negotiations. The S&P 500 has now exceeded its April 2 level, known as “Liberation Day,” when Trump’s announcement of widespread tariffs sparked concerns about economic downturn.
The Dow Jones Industrial Average registered an increase of 1,079 points, or 2.6%, at 1:53 p.m. Eastern time, whilst the Nasdaq composite demonstrated a 4.2% gain.
The positive market response extended beyond equities, following what analysts described as a “best case scenario” for US-China tariff discussions, with reductions exceeding investor expectations.
US stock markets open sharply higher as US-China tariff truce sparks global market rally
US stock markets opened with a strong rally Monday morning as investors welcomed a surprise announcement from the United States and China suspending most of their tariff hikes for 90 days, in a move aimed at de-escalating trade tensions and giving space for further negotiations.
As of 9:34 a.m. ET, the Dow Jones Industrial Average surged 959.9 points, or 2.33%, to 42,209.28 shortly after the open. The Nasdaq Composite soared 3.64%, adding 651.8 points to reach 18,580.72, driven by tech sector strength. The S&P 500 rose 2.61%, or 147.66 points, to 5,807.57.The market reaction came after a joint statement from Washington and Beijing announced the temporary suspension of most tariffs introduced during the prolonged trade war initiated under US President Donald Trump. The US agreed to slash tariffs on Chinese goods to 30% from highs of 145%, while China said it would reduce its tariffs on American imports to 10% from 125%. The agreement followed “substantial progress” during weekend talks in Geneva.
Tech stocks led the rally, with American semiconductor companies—deeply reliant on Chinese supply chains—posting notable early gains. ON Semiconductor, Micron, and Broadcom each jumped between 6% and 8%, while Nvidia added 4.8%. Read full story
Wall Street Futures jump as US-China tariff deal lifts global sentiment
US stock index futures rose sharply on Monday after the United States and China agreed to scale back tariffs, easing fears of an escalating trade war that had weighed heavily on global markets in recent weeks.
US Treasury Secretary Scott Bessent, following talks with Chinese officials in Geneva, announced that the two nations have agreed to a 90-day pause on additional trade measures.
During this period, tariffs will be reduced by over 100 percentage points, bringing them down to 10%.”This marks a pivotal moment in global trade dynamics,” said Aaron Hill, chief analyst at FP Markets. “However, the 90-day timeframe indicates these tariff cuts are a negotiation tactic rather than a permanent resolution, creating uncertainty about long-term trade policies.”
US, China agree to slash tariffs in trade war de-escalation
The United States and China announced Monday an agreement to drastically reduce tit-for-tat tariffs for 90 days, de-escalating a trade war that has roiled financial markets and raised fears of a global economic downturn.
After their first talks since US President Donald Trump launched his trade war, the world’s two biggest economies agreed in a joint statement to bring their triple-digit tariffs down to two figures and continue negotiations.
US Treasury Secretary Scott Bessent described the weekend discussions with Chinese Vice Premier He Lifeng and international trade representative Li Chenggang as “productive” and “robust”.
“Both sides showed a great respect,” Bessent told reporters.
Trump had imposed duties of 145 percent on imports for China last month — compared to 10 percent for other countries in the global tariff blitz he launched last month.
Beijing hit back with duties of 125 percent on US goods.
The United States agreed to lower its tariffs on Chinese goods to 30 percent while China will reduce its own to 10 percent.
China hailed the “substantial progress” made at the talks, which were held at the discreet villa residence of Switzerland’s ambassador to the United Nations in Geneva.
“This move… is in the interest of the two countries and the common interest of the world,” the Chinese commerce ministry said, adding that it hoped Washington would keep working with China “to correct the wrong practice of unilateral tariff rises”.
Stock markets and the dollar, which tumbled after Trump unleashed his global tariff blitz in April, rallied after the announcement. (AFP)
US to cut tariffs on China to 30%, China lowers those on US to 10%, says US trade chief
US trade chief announced that US would cut tariffs on China to 30% while China will lower those on US to 10%.
US, China suspend part of their tariffs for 90 days, down by 115%
Amidst talks of a trade deal, the United States of America and China have announced a 90 days suspension of part of their tariffs, according to a joint statement. US Treasury Secretary Scott Bessent announced that the United States and China have agreed to implement a 90-day suspension of tariffs, alongside a commitment to significantly reduce existing tariff rates.Bessent confirmed that both nations would reciprocally decrease their tariffs by 115%.
US, China declaring suspending part of their tariffs for 90 days
US and China announce suspending a part of their tariffs for 90 days, in a joint statement.
US restricting Mexico livestock imports over pest control row
The United States will suspend livestock imports from Mexico for 15 days over a pest control row between the major trade partners, officials said Sunday.
US President Donald Trump’s administration warned late April that Washington would introduce restrictions unless Mexico acted to help control a screwworm fly outbreak, whose flesh-eating larvae can kill cattle.
Mexican Agriculture Minister Julio Berdegue said Sunday his US counterpart Brooke Rollins had told him “the border would be closed to the export of livestock for 15 days to review the joint strategy against the screwworm.”
“We do not agree with this measure, but we are confident that in a shorter time we will be reaching an agreement,” Berdegue added on X.
Rollins said in a statememt: “Once we see increased surveillance and eradication efforts, and the positive results of those actions, we remain committed to opening the border for livestock trade.”
“This is not about politics or punishment of Mexico, rather it is about food and animal safety,” she added.
US touts ‘substantial progress in tariff talks with China, but details are still scarce
After two days of trade talks in Switzerland, US and Chinese officials reported encouraging signs of progress in easing tensions between the world’s two largest economies. US Treasury Secretary Scott Bessent described the discussions as productive, noting “substantial progress,” although he provided few specifics, promising more detail at a forthcoming briefing. US Trade Representative Jamieson Greer suggested an agreement had been reached, highlighting the speed of the negotiations as evidence that the differences may not have been as significant as once thought. Still, he reiterated the Trump administration’s focus on reducing the US trade deficit with China, which hit a record $263 billion last year.
China characterised the talks as “candid, in-depth and constructive,” with Vice Premier He Lifeng confirming a consultation mechanism had been established for ongoing discussions. A joint statement is expected soon. While President Trump praised the talks as a step toward a possible “total reset” of tariffs, Chinese state media maintained a more cautious stance, vowing not to compromise on core principles.
With tariffs currently exceeding 100% on both sides, a de-escalation would help stabilise global markets. Though a major breakthrough remains uncertain, even minor tariff reductions could mark a crucial step towards restoring confidence and rebalancing trade relations.
US thanks Swiss government for hosting negotiations
Treasury Secretary Scott Bessent thanked the Swiss government for providing a productive venue, attributing the setting to the success of the talks.
WTO chief urges US, China to build on trade talks ‘momentum’, ‘restore predictability’
It also hailed ‘positive outcome’ of the US-China trade talks.
US President Trump’s willingness to reduce tariffs
Before the talks, President Trump posted on social media that he was open to lowering tariffs on China from 145 per cent to 80 per cent, stating the decision was “up to Scott B,” referring to Treasury Secretary Scott Bessent.
US-China trade deal: Details of the deal to be revealed later
While the agreement has been confirmed, specific details about the trade deal have not yet been made public.
US makes ‘substantial progress’ in China tariff talks
The senior American trade negotiator reported significant progress in addressing differences between the world’s largest economies after concluding two days of discussions in Switzerland, following President Donald Trump’s imposition of high tariffs and China’s countermeasures.
US Treasury Secretary Scott Bessent indicated on Sunday that the weekend discussions yielded considerable advancement, though specific details were sparse. He stated that a comprehensive briefing would be provided the next day.
The Chinese delegation did not issue any immediate response regarding the discussions.
Bessent displayed more restraint in his evaluation of the proceedings compared to his colleague, US Trade Representative Jamieson Greer. “It’s important to understand how quickly we were able to come to agreement, which reflects that perhaps the differences were not so large as far as maybe thought,” said Greer, though he did not specify which agreement he was discussing.
Chinese vice premier hails ‘important progress’ in US-China trade talks
Chinese Vice Premier He Lifeng on Sunday hailed what he called “important progress” in trade talks with the United States, at the end of a weekend of closed-door discussions in Switzerland.
Speaking to reporters in Geneva, He said the atmosphere of the talks with US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer had been candid, in-depth, and substantive, echoing similar language from the US delegation earlier in the day.
The two countries will put out a joint statement on the talks on Monday, May 12, He said.
US, China agree to establish ‘consultation mechanism’ on trade: Chinese vice premier
He Lifeng, Chinese Vice Premier, announced on Sunday that during discussions in Geneva, China and the United States reached an agreement to establish a “consultation mechanism” to address trade-related tensions.
He disclosed to journalists in Geneva that discussions with US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer, conducted behind closed doors, led to an accord on “establishing a consultation mechanism”.
Li Chenggang, who serves as China’s international trade representative, clarified that this mechanism would facilitate “regular and irregular communications related to trade and commercial issues”.
