Global stock markets have seen a significant rise following a trade ceasefire between the US and China. This agreement, unveiled early on Monday, introduces a 90-day period aimed at easing tensions between the two largest economies. It effectively halts the tariff war that had drastically affected financial markets the previous month.
President Donald Trump had previously escalated tariffs globally, with US tariffs on Chinese imports peaking at 145% last month. However, these have now been lowered to 30%, while China’s retaliatory tariffs have dropped from 125% to just 10%.
“We are both interested in achieving balanced trade, and the US will continue its efforts in that direction,” commented Treasury Secretary Scott Bescent after discussions with Chinese officials.
Furthermore, the initial agreement offers immediate relief and could lead to potential political benefits for the president, particularly as he aims to advance a robust agenda in Congress ahead of the midterm elections next year.
This ceasefire comes shortly after the first trade agreement with the UK, marking a significant development since the tariffs were introduced last month. Trump described the deal with the UK as “the first of many.”
Ryan Williams, a veteran Republican strategist, acknowledged, “This is a positive first step.”
Trump’s approval ratings have been slipping since he resumed office nearly four months ago, falling underwater in many polls. The latest national survey indicates a decline in favor, particularly regarding his handling of the economy and inflation, which remain pressing concerns for many Americans.
The president’s approval is currently at 44% with 55% disapproving, according to a Fox News National Poll conducted from April 18 to 21. More specifically, he garnered only 38% approval for economic issues and 33% for inflation and tariffs.
After announcing his controversial tariff measures in early April, which sparked a trade war with key partners and triggered severe market declines, Trump has a chance to demonstrate tangible progress.
In a social media post Monday morning, he confidently claimed, “There is no inflation!!! LOVE, DJT.”
In his perspective, Trump emphasized that his plans require time to take effect, and the deal with the UK serves as an indication of progress being made behind the scenes. Williams suggested that while more concrete results are needed, this agreement is a positive development toward securing additional deals.
