Global markets surged on Monday after the U.S.-China tariff rollback was unexpectedly announced, signaling a sharp de-escalation in one of the world’s most consequential economic tensions. In a landmark move, Washington and Beijing agreed to reduce punitive trade duties, creating optimism among investors and strengthening the global financial outlook.
Markets Surge on News of U.S.-China Tariff Rollback
In a joint statement released Monday, the United States and China confirmed a mutual decision to significantly reduce tariffs imposed on each other’s goods for a trial period of 90 days. The U.S.-China tariff rollback sees Washington cutting its levy on Chinese imports from a staggering 145% down to 30%. Meanwhile, China will reduce its tariffs on American goods from 125% to just 10%, effective by Wednesday.
This temporary thaw in trade relations follows high-level negotiations held in Switzerland over the weekend. U.S. Treasury Secretary Scott Bessent stated, “We have agreed on a comprehensive 90-day pause and a sharp drop in tariff levels on both sides.” He emphasized that the 115% reduction on reciprocal tariffs aims to reset economic cooperation.
Additionally, the White House announced that Beijing will suspend non-tariff retaliatory measures introduced since April 2, further easing the trade environment.
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Investor Sentiment Skyrockets Across Global Markets
The immediate impact of the U.S.-China tariff rollback was evident in global stock markets. The Dow Jones Industrial Average soared by over 1,000 points (2.5%) in early Monday trading. Tech-heavy indexes also responded positively: the Nasdaq Composite jumped 3.4%, while the S&P 500 rose 2.6%.
European markets followed suit, with the Stoxx Europe 600 index gaining 1%. In Asia, Hong Kong’s Hang Seng Index finished the day up by 3%, reflecting strong investor confidence in a renewed trade-friendly atmosphere.
Alongside equity rallies, the U.S. dollar gained strength against major currencies such as the euro, yen, and pound. Commodities responded in kind: gold prices fell, while yields on 10-year U.S. Treasuries rose to approximately 4.45%. Even the cryptocurrency market saw modest gains, riding the wave of improved risk appetite.
Trade Talks Continue Amid Market Optimism
Both countries emphasized that this 90-day U.S.-China tariff rollback is not a final agreement but a stepping stone toward broader trade cooperation. A formal mechanism will be established to ensure continued dialogue on economic and trade matters.
This temporary relief has boosted hope that the world’s two largest economies may eventually reach a more sustainable trade agreement—one that could stabilize global supply chains and reduce inflationary pressures.
The unexpected U.S.-China tariff rollback marks a significant shift in global economic policy, sending an encouraging message to markets around the world. As negotiations continue, investors and policymakers alike will watch closely for signs that this truce could evolve into long-term economic cooperation. For now, the global economy breathes a collective sigh of relief as trade tensions ease—if only temporary
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