PREMIUM CONTENT
U.S. and China Agree to Cut Tariffs, Easing Trade Tensions
The U.S. and China have agreed to significantly lower tariffs, marking a shift from confrontation to cooperation between the world’s two largest economies.
Highlights from the Geneva talks:
The U.S. will reduce its tariff on Chinese goods from 125% to 10%.
A separate 20% tariff on fentanyl-related products will remain in place.
China will lower its retaliatory tariffs from 125% to 10%.
These cuts are temporary, set to last 90 days while negotiations continue.
Market reaction was immediate:
The S&P 500 looks set to recover its losses since April.
Nasdaq-100 futures surged more than 3.5%.
Major tech stocks like Amazon, Apple, and Tesla jumped in premarket trading.
The U.S. dollar and bond yields also climbed.
The trade war had severely disrupted U.S.-China trade and weighed on global businesses. This deal has renewed hopes of avoiding deeper economic damage.
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