KEY TAKEAWAYS
The U.S. and China agreed Monday to dramatically roll back tariffs on each other's imports for an initial 90-day period, the two countries said in a joint statement, in a surprise de-escalation of trade tensions.
U.S. Treasury Secretary Scott Bessent said that the two sides "have reached an agreement on a 90-day pause and substantially move down the tariff levels," according to CNBC . "Both sides on the reciprocal tariffs will move their tariffs down 115%." That would mean the U.S. levy on Chinese imports will be reduced to 30% from 145% by Wednesday, while Beijing's tariffs on U.S. goods will drop to 10% from 125%.
"After taking the aforementioned actions, the Parties will establish a mechanism to continue discussions about economic and trade relations," the countries said in their joint statement.
China will also suspend or remove the non-tariff countermeasures it had imposed after April 2, the White House said.
The cooling of trade tensions between the two largest economies in the world following talks in Switzerland between Beijing and Washington over the weekend sent global stocks and the dollar rallying.
The Dow Jones Industrial Average was up 2.5%, or more than 1,000 points, in early trading Monday, while the S&P 500 and tech-heavy Nasdaq Composite jumped 2.6% and 3.4%, respectively. Overseas, the Stoxx Europe 600 index is rising 1% and Hong Kong's Hang Seng finished 3% higher.
The dollar is rising against the euro, yen, and pound, and gold prices are tumbling. The yield on 10-year Treasuries is rising to around 4.45%, while most major cryptocurrencies are gaining.
UPDATE—May 12, 2025: This article has been updated to include information from the White House and refreshed share prices.
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