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Trump Declares “Reset” in US-China Relations as Markets Surge on Tariff Pause

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By Swaleh
US President Donald Trump announced a “total reset” in relations with China after both nations agreed to reduce tariffs on each other’s goods for 90 days. Trump expressed confidence in upcoming talks, saying he expects to meet with Chinese President Xi Jinping soon and believes tariffs will not reach the extreme levels they once did.

This development has sparked a surge in US markets, marking a significant recovery since Trump introduced his “Liberation Day” tariffs in April. According to New York business reporter Natalie Sherman, US markets are now trading at levels similar to the beginning of the year.

The deal entails a reduction in US tariffs on Chinese imports from 145% to 30%, while Chinese tariffs on US goods will fall from 125% to 10%. The cut is larger than anticipated, though a 30% tariff remains relatively high, as noted by correspondent Theo Leggett.

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