On May 12, 2025, fi nancial markets reacted positively after the United States and China announced a signifi cant reduction in reciprocal tariff s. The Nasdaq Composite surged 4.3%, entering a new bull market, while the S&P 500 rose 3.3% and the Dow Jones Industrial Average gained over 1,100 points. The agreement establishes a 90-day truce, reducing tariff s from 125% to 10% on both sides. However, a 20% tariff on fentanyl-related products will remain. U.S. Treasury Secretary Scott Bessent indicated that negotiations for a broader deal will begin soon but noted that tariff s are unlikely to drop below 10%. President Trump described the agreement as a “total reset” in US-China trade relations, with a potential meeting with Chinese President Xi Jinping expected later in the week.
Source: Wall Street Journal