The United States and China said Monday that they had agreed to a 90-day pause on most of the tariffs they have imposed on each other since last month, sending stocks soaring amid hopes of an easing trade war between the world’s two largest economies.
U.S. tariffs on Chinese imports will be cut to 30% from 145%, while China’s levies on U.S. imports will be cut to 10% from 125%, the two countries said in a joint statement.
The announcement comes after officials from the two countries met in Geneva over the weekend for their first face-to-face talks on the tariffs, which began mounting after President Donald Trump’s April 2 announcement of sweeping global duties.
Joint Statement on U.S.-China Economic and Trade Meeting in Geneva
The United States will (i) modify the application of the additional ad valorem rate of duty on articles of China (including articles of the Hong Kong Special Administrative Region and the Macau Special Administrative Region) set forth in Executive Order 14257 of April 2, 2025, by suspending 24 percentage points of that rate for an initial period of 90 days, while retaining the remaining ad valorem rate of 10 percent on those articles pursuant to the terms of said Order; and (ii) removing the modified additional ad valorem rates of duty on those articles imposed by Executive Order 14259 of April 8, 2025 and Executive Order 14266 of April 9, 2025.
China will (i) modify accordingly the application of the additional ad valorem rate of duty on articles of the United States set forth in Announcement of the Customs Tariff Commission of the State Council No. 4 of 2025, by suspending 24 percentage points of that rate for an initial period of 90 days, while retaining the remaining additional ad valorem rate of 10 percent on those articles, and removing the modified additional ad valorem rates of duty on those articles imposed by Announcement of the Customs Tariff Commission of the State Council No. 5 of 2025 and Announcement of the Customs Tariff Commission of the State Council No. 6 of 2025; and (ii) adopt all necessary administrative measures to suspend or remove the non-tariff countermeasures taken against the United States since April 2, 2025.
US stocks open strong on trade deal with China. Dow surges 1,000 points
U.S. stocks opened sharply higher after the U.S. announced a trade deal with China.
At 9:58. ET, the blue-chip Dow soared 2.46%, or 1,013.82 points, to 42,263.20; while the broad S&P 500 jumped 2.58%, or 145.86 points, to 5,805.77; and the tech-heavy Nasdaq rallied 3.45%, or 617.79 points, to 18,546.70. The benchmark 10-year Treasury yield rose to 4.449%.
