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TRADE WAR TRUCE: U.S. & CHINA CALL A CEASEFIRE!
Markets Soar as Tariffs Get a Time-Out!
In a stunning turnaround, the stock markets exploded on Monday after the U.S. and China threw cold water on a boiling trade war! Get ready for a wild ride, because tariffs that had threatened to torch the economies of the world’s top two superpowers are being rolled back!
Hang Seng Index Rockets Up 3%!
The Hong Kong Hang Seng Index blasted upward, closing 3% higher—just moments before the market bell rang! This surge wipes out losses suffered since President Trump declared war with “reciprocal tariffs” back in April. Stateside, S&P 500 futures spiked nearly 3% before breakfast!
Tariff Rollback: A Game-Changer!
Hold on to your wallets! The U.S. has announced a shocking rollback of most tariffs on Chinese goods! For the next three months, a 30% tariff will linger—10% on all U.S. imports and a special 20% targeting alleged fentanyl smuggling. But fear not: the whopping 145% tariffs imposed just weeks ago are being shredded!
But here’s the kicker: if things get dicey after 90 days, watch out! Tariffs could skyrocket to a staggering 54%!
China Follows Suit: Tariffs Down to 10%!
In a jaw-dropping move of its own, China is slashing tariffs on U.S. goods to a mere 10%! Say goodbye to excessive retaliation while they cool off in the trade spat simmering between these titanic nations!
TOTAL RESET! THE NEWS YOU’VE BEEN WAITING FOR!
Even before the official announcements, whispers of hope filled the air! Asian investors buzzed with excitement as U.S. and Chinese officials met in Switzerland—marking their first face-off since the trade firestorm ignited in February.
U.S. Treasury Secretary Scott Bessent declared they had made “substantial progress”! Meanwhile, Trump dubbed talks a “total reset” in relations—talk about drama!
Markets Are On Fire!
Optimism set the Asian markets ablaze on Monday! Japan’s Nikkei 225 climbed 0.4%, while South Korea’s index soared 1.2%, and Taiwan’s Taiex floated up 1%. But all this happened before the big reveal from the U.S. and China!
The Stakes: Jobs and Economies on the Line!
This tariff détente is the most significant reset in Trump’s trade war so far. Both nations have quietly granted crucial exemptions on essential goods—just to keep things from spiraling out of control.
But the clock was ticking! The U.S. was already reeling from the effects, with port operators warning of plummeting shipping volumes and businesses clamoring about delays. Meanwhile, China faced catastrophic job losses linked to the U.S. market, with Goldman Sachs estimating up to 16 million jobs at stake!
Fear of Economic Ruin Brings Peace!
Could it be that real economic peril finally coerced both sides to the table? Bessent confirmed at a press conference that neither party wanted to break away from one another.
Buckle up, folks—this rollercoaster isn’t over yet!
photo credit: fortune.com
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