U.S.–China Call a Truce: 90-Day Tariff Drop Sparks Global Market Frenzy
After months of high-stakes saber-rattling and tit-for-tat tariffs, the United States and China have stunned global markets by announcing a 90-day trade truce cutting back on import duties and giving businesses a badly needed breather.
Tariffs are down. Markets are up. But don’t get too comfortable.
The Deal: What’s Actually Changing?
In a rare moment of economic diplomacy, both superpowers agreed to roll back aggressive tariffs as a gesture of goodwill.
U.S. on Chinese goods |
Slashed from 145% → 30% |
China on U.S. goods |
Reduced from 125% → 10% |
These cuts are temporary they’ll hold for 90 days, giving negotiators time to draft a more permanent trade agreement. That window closes fast.
Market Reaction: From Panic to Profit
Global traders responded like champagne had just been uncorked on Wall Street.
- Dow Jones: +1,030 points
- S&P 500: 4% spike
- Nasdaq: Tech stocks rebounded sharply
- Asia & Europe: Nikkei, FTSE, and DAX all in the green
The U.S. dollar rallied, gold pulled back, and investor sentiment soared for now.
Who Wins and Who Worries?
Short-Term Winners
- Retailers & importers rushing to bring in goods while tariffs are low
- Tech firms that rely on Chinese components
- Commodity exporters banking on stable global demand
Still At Risk
- Agricultural exporters with long-term Chinese contracts
- U.S. SMEs who already restructured supply chains
- Emerging markets watching nervously for another flare-up
Financial Juggernut Insight
This is not a trade deal it’s a pressure valve.
Markets are reacting to relief, not resolution. The fundamental rift remains:
- Intellectual property battles
- Semiconductor supremacy
- Supply chain nationalism
So enjoy the rally but don’t confuse a timeout for peace.
How to Play It Smart
If you’re a… |
You should… |
Trader or investor |
Watch tech, logistics, and retail stocks for upside |
Business owner |
Lock in shipments NOW. These tariffs can snap back |