The announcement saw markets filled with euphoria over the de-escalation of the trade war with the S&P500 up 3.26% and the Hang Seng Index rising close to 3% on May 12.
Over the past weekend, the US and China have reached a trade agreement to reduce their tariffs on each other’s imports by 115% each from 145% to 30% and 125% to 10% respectively after negotiation talks in Geneva, Switzerland.
The rollback in tariffs marks a significant de-escalation in trade tensions that have rocked global markets in the past few weeks following aggressive hikes of tariffs by President Donald Trump’s administration and retaliatory measures by China.
