As Washington and Beijing attempt to end a trade war that has hampered the world economy and put financial markets on edge, the United States and China announced on Monday ( May 12 ) that they have come to an agreement to reduce reciprocal tariffs.
US Treasury Secretary Scott Bessent stated to writers following discussions with Chinese authorities in Geneva that a 90-day wait on measures had been reached and that 115 percent of the tariffs may be reduced.
On Sunday, the two biggest economies ‘ high-stakes trade talks ended on a positive note, with both parties claiming that the discussions were” constructive.”
Li Chenggang, the sin commerce secretary, said on Sunday that the joint statement do” excellent information for the globe,” while Bessent, who spoke for the government, described” large progress” in discussions.
Financial businesses have been watching for signs of a thaw in a contentious US-China trade war that has already stifled supply chains, caused cuts, and raised retail prices.
After the US and China announced a 90-day wait on taxes and bilateral duties would fall quickly, giving investors some assurance that a full-fledged trade war might have been avoided, stocks and the US dollar rose on Monday.
Futures on the S&, P 500, and Nasdaq increased by 2.8 % and 3.6 %, respectively, from previous gains of 1.5 % to 2.2 %, while in Europe, the STOXX 600 increased by 1 % in early trading.
On Monday night, Asian markets rose as investors greeted the announcement that days of business unrest may be finally coming to an end.