U.S.-China Trade Deal Sends Markets Soaring as Inflation Data Arrives This Week

President Donald Trump secured two wins on trade in a matter of days, with the latest being an announcement Sunday that negotiations between top U.S. officials and their Chinese counterparts had concluded in a 90-day reduction of tariffs.

The move that will bring tariffs down to 10% on Chinese exports from the previous 145% follows Friday’s Oval Office announcement by Trump over a “conclusive” deal with the U.K. Markets rallied on the latest news that a brewing trade war with China may be averted, sending Dow Jones Industrial Average futures up nearly 1,000 points in premarket trading.

Import tariffs of 20% will remain as part of an attempt to pressure China on restricting the flow of deadly fentanyl.

“We have reached an agreement on a 90-day pause and (to) substantially move down the tariff levels,” Treasury Secretary Scott Bessent said Monday at a press conference in Geneva. “Both sides on the reciprocal tariffs will move their tariffs down 115%.”

Sam Bullard, senior economist and managing director at Wells Fargo’s corporate and investment banking unit, wrote late Sunday that “the commitment to continue negotiations signals a mutual interest in de-escalating tensions and could pave the way for a more stable and prosperous U.S. and global economy.”