#TradeWarEases
Today, the USA and China announced an agreement to significantly reduce import tariffs for 90 days, marking a temporary truce in the trade war between the two powers.
Key points of the agreement:
- US tariffs on Chinese products drop from 145% to 30%.
- China reduces tariffs on American products from 125% to 10%.
- The 20% tariff on Chinese products linked to fentanyl trafficking remains.
Immediate impacts on the market:
- Dow Jones climbed 1,044 points (+2.5%).
- S&P 500 advanced 2.9%.
- Nasdaq rose by 4%.
Stocks like Apple, Amazon, Dell, and Best Buy surged.
Consumer sector of the S&P 500 grew by more than 5%.
Outlook: Despite the truce, structural issues remain unresolved. Experts view the agreement as a short-term relief, with deeper negotiations still to come.
Sources: Reuters, NY Post, The Times, Investopedia