US-China Tariff Truce Sparks Global Market Rally

The US and China agreed to roll back recent tariffs and pause further increases for 90 days, boosting global markets. Reductions see US tariffs on Chinese goods cut to 30%, and China's on US goods to 10%, moving to ease economic tensions after previous rate hikes caused global concern.

The United States and Chinese officials reached a breakthrough on Monday, agreeing to roll back recent tariffs and initiate a 90-day pause for ongoing discussions, aiming to resolve long-standing trade disputes. This agreement has led to a significant uptick in global stock markets, reflecting growing optimism among investors.

U.S. Trade Representative Jamieson Greer, alongside Treasury Secretary Scott Bessent, announced that the United States would reduce its tariff rate on Chinese goods from 145 percent to 30 percent. In a reciprocal move, China agreed to lower its rate on U.S. imports to 10 percent. These announcements were made at a high-profile news conference in Geneva.

The reciprocal reductions seek to ease tensions that had previously seen the two countries impose prohibitive levies, effectively boycotting each other's products and disrupting bilateral trade worth $660 billion annually. The market response was immediate, with U.S. futures surging over 2 percent, Hong Kong's Hang Seng index climbing nearly 3 percent, and European benchmarks like Germany and France rising by 0.7 percent each.

(With inputs from agencies.)