(NewsNation) — Stocks soared Monday morning after the news that U.S. and Chinese officials have reached a deal to roll back most of their tariffs for 90 days.
The changes will take effect by Wednesday, according to a White House statement.
“People have never used trade the way I’ve used it,” President Donald Trump said to reporters Monday. “Yesterday, we received a total reset with China.”
The United States agreed to reduce its 145% tariff on imported Chinese goods to 30%, Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer announced at a news conference in Geneva on Monday. China, in return, has agreed to lower its tax on American goods from 125% to 10%, they said.
The S&P 500, Nasdaq and Dow Jones indexes all jumped more than 2.5% when trading began on Monday morning.
On Sunday, Bessent teased “substantial progress” as representatives from the two countries met amid a trade war that had already begun to impact American businesses and Chinese companies.
“I’m happy to report that we made substantial progress between the United States and China in the very important trade talks,” Bessent said, according to a statement from the White House.
Trump first announced sweeping tariffs on dozens of countries at the start of April, days before pausing most of them for 90 days. On April 9, Trump raised the rate on Chinese imports to 145% while keeping most other countries at a baseline tariff of 10%.
The move sparked a trade war, but the new agreement signals the U.S. and China are “moving forward in the spirit of mutual opening, continued communication, cooperation, and mutual respect,” the White House statement said.
The 20% punitive tariff against China that Trump added in an effort to stop the flow of fentanyl into the U.S. remains in place.
The countries expect further trade talks, and Trump said he expects to speak to Chinese President Xi Jinping at the end of the week.
Trump said that prior to the tariffs, the U.S. “fully opened up” to China and that China did not do so in return. He said China’s decision to open to the U.S. will be “great for everybody.”
China’s commerce ministry said it would take all necessary measures to suspend or remove nontariff countermeasures against the U.S. since April 2.
