After a long period of gloom, Monday saw the US stock market bounce back after President Trump announced a ‘total reset’ of his trade relations with China, with the S&P 500, Nasdaq and Dow rising by up to 4.3%.
The 90-day agreement is seen as a relief but not a definitive solution when key sectors such as automotive, steel and pharmaceuticals are still trapped in high tariffs.
Under the agreement, the US has reached an agreement to reduce general tariffs of 145% to 30% on Chinese goods, while China reduced its retaliatory tariffs from 125% to 10%.
However, Trump insisted that tariffs on strategic sectors and fentanyl-related goods will never be dropped!
Trump insisted that this move was not a form of charity, while warning that tariffs could be raised again if negotiations fail.
Even so, traders and investors still welcome the temporary easing of the trade war.
Shipping companies such as Maersk and Hapag-Lloyd are up more than 12%, while tech giants such as Apple and Nvidia are also gradually recovering.
China, which is facing factory closures and a slump in exports, called the deal an “important step” but many see it as a tactical pause, not a solution.
Reset or just a pause before a new chapter erupts? Markets may be quiet today, but rhetoric is still raging — and as a trader, now is the best time to sharpen your strategy.
