Markets Rebound as US and China agree to slash tariffs for 90 days

[Social Media]

 

 

The US and China have agreed a deal that will significantly cut the import tariffs, or taxes, both sides have imposed on one another for a 90-day period.

 

US Treasury Secretary Scott Bessent said both countries would lower their reciprocal tariffs by 115% for 90 days. The announcement came after the two countries held intensive talks in Switzerland over the weekend. It was the first meeting between the two countries since US President Donald Trump had levied steep tariffs against China on its goods entering America in January.

 

The breakthrough comes after Bessent and US Trade Representative Jamieson Greer joined other American officials in Geneva to meet with Chinese counterparts. These discussions followed last month’s dramatic move by President Trump to slap a 145% tariff on most Chinese imports. China responded in kind with its own 125% tariffs on American goods. The tit-for-tat measures caused market volatility and rattled investor confidence, while casting a shadow over global supply chains.

 

President Trump had imposed a 145% tariff on Chinese imports, while Beijing responded with a 125% levy on some US goods. However, the US tariffs on Chinese imports will now be cut to 30% for 90 days, while Chinese tariffs on US imports will be cut to 10% for the same period of time.

 

The US measures still include an extra component aimed at putting pressure on Beijing to do more to curb the illegal trade in fentanyl, a powerful opioid drug. But US officials said they had been positively surprised by the willingness of China to deal with the problem. "Both countries represented their national interest very well," Bessent said. "We both have an interest in balanced trade, the US will continue moving towards that."

 

When the original tariffs were imposed it caused turmoil in the financial markets and sparked fears of a global recession.

News of the pausing of the tariffs led to a rebound on stock markets.

 

Hong Kong's benchmark Hang Seng Index jumped on the announcement, ending the day up 3%. China's Shanghai Composite Index had closed before details of the deal came out, and ended 0.8% higher.

 

European stocks opened higher and early indications were that the main US stock markets will open up by 2-3%.

 

While the long-term impact remains uncertain, the recent progress in negotiations could mark a pivotal step toward de-escalation. Investors appear to be watching closely, hopeful that calmer trade waters may lie ahead.

 

  Adapted by ASEAN Now from BBC  2025-05-12

 

 

[SunnyinBangrak]

This epic stock market performance is 100% thanks to Trump. Im sure we all agree in richly praising him. Great idea to gift him a plane to thank him. Happy days!

[bkk6060]

Yes, wow Nasdaq up almost 4%.  Dow almost 1,000 points.  Seems it will be a great day. Winning!

[jerrymahoney]

S&P still down 500 or about 10% from where it was mid-FEB 2025.

[sscc]

USA  reset  tariff temporarily from 145 to 10+20 = 30%.   The 20% was announced along with 25% added for Mexico and Canada in Feb 2025.. 

China reset tariff temporarily from 124 to 10%. 

 

USA had taken a big step pulling back and reducing 115% ( same to both)   while China called this was USA proper policy correction. 

[hotsun]

So much for the doomers. I hope they panic sold

[SunnyinBangrak]

Just now, hotsun said:

So much for the doomers. I hope they panic sold

They did. Right at the bottom.

[BLMFem]

Hooray, let's applaud the sicko who deliberately pushed that old lady down the stairs, but when seeing all the angry stares sheepishly helped her up again!

What a HERO!

 

Flip-flop-flip-flop-flip-flop.

 

 

[Eric Loh]

Trump’s insane tariff war has altered the pre tariff supply chain and his walk back on tariffs with China will not change much. Will be enormously difficult to gain back the trust of buyers and investors to do business with US. Farm products will forever change to more reliable suppliers like Brazil and Argentina. Investors will not put money in US and will move to Europe and Asia. Trump has done long term damage to US economy. 

 

 

[BLMFem]

1 hour ago, jerrymahoney said:

S&P still down 500 or about 10% from where it was mid-FEB 2025.

Awww c'mon, don't be a MAGA party pooper! Their wins are so rare that when they mistakenly think they've got one I think it's downright mean to point out the truth.

Shame on you!

[hotsun]

1 minute ago, Eric Loh said:

Trump’s insane tariff war and his walk back on tariffs with China has altered the pre tariffs supply chain. Will be enormously difficult to gain back the trust of buyers and investors to do business with US. Farm products will forever change to more reliable suppliers like Brazil and Argentina. Investors will not put money in US and will move to Europe and Asia. Trump has done long term damage to US economy. 

 

 

Pretty sure you were on here saying the us was <deleted> and china won and im pretty sure this new prediction of yours means jack <deleted>

[SunnyinBangrak]

7 minutes ago, BLMFem said:

Awww c'mon, don't be a MAGA party pooper! Their wins are so rare that when they mistakenly think they've got one I think it's downright mean to point out the truth.

Shame on you!

Where is the hivemind currently at regarding their "nothing good can possibly come from Trumps tariffs" false mantra now that results are tangible?

[Social Media]

A trolling post with oversize font removed along with replies

[NoDisplayName]

1 hour ago, jerrymahoney said:

S&P still down 500 or about 10% from where it was mid-FEB 2025.

 

Winning?©

[nick supreme]

This change is bad news for people on the left like me, but it's one less thing to complain about.

[NoDisplayName]

24 minutes ago, SunnyinBangrak said:

Where is the hivemind currently at regarding their "nothing good can possibly come from Trumps tariffs" false mantra now that results are tangible?

 

What results?

 

Trump levies a 30% tax on Chinese goods, paid by the American consumer.

 

China still able to undercut American manufacturing, has shut down some low-value factories or offshored them to third world countries, so they can concentrate more on civilian aircraft and 6G telecoms and nukular fusion.

[nauseus]

39 minutes ago, BLMFem said:

Hooray, let's applaud the sicko who deliberately pushed that old lady down the stairs, but when seeing all the angry stares sheepishly helped her up again!

What a HERO!

 

Flip-flop-flip-flop-flip-flop.

 

 

 

Flup

[frank83628]

1 hour ago, jerrymahoney said:

S&P still down 500 or about 10% from where it was mid-FEB 2025.

So it is down 10% from the rise it did when trump took office....so still higher than it was under Biden.

[TedG]

26 minutes ago, NoDisplayName said:

 

 

 

Trump levies a 30% tax on Chinese goods, paid by the American consumer.

 

 

 

I'm glad the left is getting on the no-tax bandwagon.    Maybe the left will now support budget cuts at the federal level. 

[NoDisplayName]

26 minutes ago, frank83628 said:

So it is down 10% from the rise it did when trump took office....so still higher than it was under Biden.

Jan 21 2021    30996

Dec 04 2024   45014

Jan 21 2025   44025

Jan 30 2025   44882   <--1.95%

April 08 2025  37645

 

 

Market up 50% during previous administration.

Is that what they call the "Biden overhang"?

 

At the low point in April, the market had fallen over 7000 points, or about 16%

Is this what they call the "Trump underbite?"

 

[bubblegum]

US stock market reacts like a damsel in distress. Give it a day or 2 and the market will again realize Trump did not win a thing. And down they go again.

 

[BLMFem]

54 minutes ago, SunnyinBangrak said:

Where is the hivemind currently at regarding their "nothing good can possibly come from Trumps tariffs" false mantra now that results are tangible?

Tangible results?😆 

Please do tell!

[frank83628]

Just now, bubblegum said:

US stock market reacts like a damsel in distress. Give it a day or 2 and the market will again realize Trump did not win a thing. And down they go again.

 

Ah, so, just to confirm....the markert rose.... ignore it, it happens, ... market drops.....Aaaaaggggghh Trump,

gotcha🤔

[NoDisplayName]

14 minutes ago, TedG said:

 

I'm glad the left is getting on the no-tax bandwagon.    Maybe the left will now support budget cuts at the federal level. 

 

Who is this leftist strawperson you're dreaming up?

 

Shirley, not I!!  Heck, I voted "not Hillary" in 2016.

[nauseus]

7 minutes ago, NoDisplayName said:

 

Who is this leftist strawperson you're dreaming up?

 

Shirley, not I!!  Heck, I voted "not Hillary" in 2016.

 

I bet you did.

[spidermike007]

3 hours ago, SunnyinBangrak said:

This epic stock market performance is 100% thanks to Trump. Im sure we all agree in richly praising him. Great idea to gift him a plane to thank him. Happy days!

You mean the 4,000 point drop? And the flight from US bonds? 

[riclag]

Trump the GOAT presidents for my country!

[nauseus]

29 minutes ago, spidermike007 said:

You mean the 4,000 point drop? And the flight from US bonds? 

 

Small stuff. The US stock markets were all way overvalued and bonds were being ditched long before Trump got in.

 

These tariffs are far from final.

[Keep Right]

And yet more winning from the Author of "The Art of the Deal."

[Tug]

6 hours ago, Keep Right said:

And yet more winning from the Author of "The Art of the Deal."

What win?we consumers are still paying more he’s wrecked the ag markets again!if we are lucky by the time this sielf inflicted mess pans out we will IF we are lucky be paying a 10% trump tax.thats not to mention the ill will this stupid move created.all the lipstick on the planet ain’t gonna make this pig pretty don’t be fooled.in the end there will be little changed but we consumers will be paying more.