U.S., China Agree To Cut Tariffs For 90 Days

Stocks and the dollar surged on Monday after the United States and China announced a 90-day pause on tariffs, with reciprocal duties set to drop sharply giving investors' confidence that a full-scale trade war may have been averted, Reuters reported.

This weekend’s meetings marked the first face-to-face interactions between U.S. and Chinese officials since President Donald Trump returned to power and launched a global tariff campaign. I Photo: Xinhua

U.S. Treasury Secretary Scott Bessent, speaking after talks with Chinese officials in Geneva, told reporters that the two sides had reached a deal outlined in a joint statement, with reciprocal tariff rates dropping by 115 percentage points.

This weekend’s meetings marked the first face-to-face interactions between U.S. and Chinese officials since President Donald Trump returned to power and launched a global tariff campaign, with especially steep duties on China.

Futures on the S&P 500 and Nasdaq rose to 2.8% and 3.5%, respectively, up from earlier gains of 1.5–2%. In Europe, the STOXX 600 climbed 0.7% in early trading.

The dollar extended its gains, with the euro down 1.2% at $1.1164—after having dropped 0.2% earlier—while the yen weakened, leaving the U.S. currency up 1.6% at 147.715, from an earlier gain of 0.5%.

Benchmark 10-year U.S. Treasury yields rose 7 basis points on the day to 4.44%, up from a 5-basis point increase before the joint statement.