The United States and China have agreed to a 90-day reduction in tariffs, significantly easing trade tensions. The US will lower tariffs on Chinese imports from 145% to 30%, while China will reduce tariffs on US goods from 125% to 10%.
This development has sparked a global market rally. The Dow Jones Industrial Average surged over 1,000 points, the S&P 500 rose by 2.6%, and the Nasdaq Composite gained more than 4%.
While the agreement is temporary, it marks a significant step towards de-escalating the trade war that has disrupted global supply chains. Investors are hopeful that this truce will lead to more comprehensive trade negotiations in the near future.