BREAKING NEWS: U.S. and China Agree to Slash Tariffs, Boosting Global Markets
Stocks surge worldwide following reduction in US-China tariffs by both nations.
Light at the end of the trade tunnel! The U.S. and China have struck a deal to significantly reduce tariffs on each other's goods for an initial 90-day period, sending global stocks and the dollar soaring whilst gold prices plummet.
According to a joint statement from both countries, the U.S. levies on Chinese imports will tumble from 145% to 30% by Wednesday, while China will lower its tariffs on U.S. goods from 125% down to 10%.
This positive turn in the trade tensions between the world's two largest economies has been confirmed by U.S. Treasury Secretary Scott Bessent, who stated that both parties would slash their tariffs by 115%.
The staunch negotiations in Switzerland between Beijing and Washington over the weekend have led to this surprising trade truce. After this interval, the nations will hold further discussions on their economic and trade relationships.
Moreover, China will stop or nullify the non-tariff countermeasures that came into effect after April 2, as revealed by the White House.
This trade relief has resulted in an incredible rally on the Dow Jones Industrial Average, surging by 2.5% or over 1,000 points in early trade, with the S&P 500 and tech-rich Nasdaq Composite climbing 2.6% and 3.4%, respectively. Overseas markets, such as the Stoxx Europe 600 index and Hong Kong's Hang Seng, are experiencing similar growth.
Meanwhile, the dollar is strengthening against the euro, yen, and pound, while gold prices plummet and the yield on 10-year Treasuries rises to around 4.45%. Cryptocurrencies are also on the upswing.
UPDATE - May 12, 2025: This article has been revised to include details from the White House and updated share prices.
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