FINALE: U.S. 🇺🇸 & China 🇨🇳
In a landmark move with deep implications for global markets, the United States and China have agreed to significantly scale back trade tariffs, signaling a cooling of one of the most heated geopolitical rivalries in recent years.
The U.S. will cut tariffs on Chinese goods from 145% to 30% over the next 90 days, while China will lower its own tariffs on U.S. imports from 125% to just 10%. This tit-for-tat tariff war had previously shaken investor confidence, disrupted supply chains, and weighed heavily on global trade.
A new economic dialogue platform is also being established to address long-term structural issues and prevent future escalations — a move seen as a strategic attempt to ensure stability between the two economic giants.
Markets responded instantly:
• S&P 500 futures soared by 2.8%
• Nasdaq futures gained 3.5%
• The U.S. dollar strengthened by 0.7%
• Gold prices dipped 2.3% — a classic sign of risk-on sentiment ⚡
This agreement, announced after high-level talks in Geneva, marks a significant turning point. Earlier in 2025, tariffs had spiked to historic highs, threatening to derail global growth.
For traders, this is more than diplomacy, it's momentum. The risk-on rally could signal further upside in equities, especially in export-heavy sectors. Stay alert for volatility and potential rotation into international equities and cyclical plays.
Global trade is back on track — for now.
