nvn news
Tue May 13 2025
Global share markets jumped on Monday after the United States and China agreed to ease trade tensions following weekend talks in Switzerland. President Donald Trump described the outcome as a “total reset” of trade terms between the two countries, BBC reported.
Under the new agreement, the US will reduce its tariffs on Chinese goods from 145 percent to 30 percent, while China will lower its retaliatory tariffs from 125 percent to 10 percent. However, some of the tariff cuts are temporary and will be reviewed after 90 days. President Trump said he did not expect tariffs to return to their previous high levels.
“We’re not looking to hurt China,” Trump told reporters, adding that China had been facing factory closures and unrest due to the trade pressure. He said he expects to speak with Chinese President Xi Jinping later this week.
The announcement brought immediate relief to investors. The S&P 500 rose by 3.2 percent, the Dow Jones gained 2.8 percent, and the Nasdaq surged 4.3 percent. Big US companies like Amazon, Apple, and Nike saw sharp gains, while European and Asian stock markets also recorded positive results.
The agreement also led to stock increases for global shipping firms, with Denmark’s Maersk up more than 12 percent and Germany’s Hapag-Lloyd rising 14 percent. Maersk welcomed the move, calling it “a step in the right direction.”
Despite the progress, some tariffs remain in place. The US will keep a 20 percent tariff related to the fight against illegal fentanyl trade. Higher tariffs on specific sectors like steel and automobiles also remain.
Meanwhile, China has agreed to suspend or remove non-tariff trade barriers against the US. Additional retaliatory tariffs imposed after April have been cancelled on both sides.
The trade war, which began earlier this year, had already shown negative effects. US ports saw fewer Chinese shipments, and factory activity in China slowed, leading to job losses.
Chinese businesses responded with caution. Some expressed concern that the tariff relief may only be temporary and warned of further trade challenges ahead.
Trade groups such as the National Retail Federation and the International Chamber of Commerce welcomed the deal. They said the move brings short-term stability and shows both countries want to avoid deeper economic conflict.
As investors shifted their focus back to stocks, gold prices, often seen as a safe haven during uncertainty, fell by 3.1 percent to $3,223.57 per ounce.
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