Stock markets surged globally after the U.S. and China agreed to cut tariffs following weekend talks in Geneva.
The Dow jumped over 1,100 points, with the S&P and Nasdaq rising 3% and 4%. Analysts welcomed the unexpected progress, calling it a substantial de-escalation.
Under the deal, both nations will reduce tariffs by 115% for 90 days while retaining a 10% baseline. China will roll back retaliatory tariffs and some non-tariff measures, while the U.S. will remove tariffs imposed in early April but retain earlier ones.
The White House described the agreement as historic, aiming to reset trade and open Chinese markets to U.S. exports. Talks will continue beyond the 90-day window, and the deal also addresses China’s role in the fentanyl crisis.
