Trump has proposed lowering China’s tariffs to 80% ahead of trade talks
In a social media post, President Donald Trump proposed lowering China’s tariffs from 145% to 80% ahead of trade negotiations.
U.S. stocks opened up rapidly high after the US announced its trade agreement with China.
The US and China have suspended most of the tariffs that countries have imposed on each other for 90 days. The US, which is effective from Wednesday, will temporarily reduce China’s tariffs from 145% to 30%, while China will reduce US tariffs from 125% to 10%.
“This was a bigger escalation than expected… The negotiation process could remain difficult,” said Linsongg, chief economist at Greater China at the Bank of Netherlands.
Tensions could re-escalate as the 90-day suspension deadline approaches, some said.
“We are approaching the deadline for 90 days of mutual tariffs that we expect volatility,” wrote Gina Volbin, president of Volbin Wealth Management Group. “But today, the market is blowing the resistance level. If it’s stuck, this is a big win for Trump, for stocks, for investors.”
At 9:58. ET, the Blue Chip Dow surged at 2.46%, or 1,013.82 points, to 42,263.20. The Broad S&P 500 jumped 2.58% (145.86 points) to 5,805.77. And the high-tech Nasdaq has 3.45% (617.79 points) to 18,546.70. The benchmark’s 10-year financial yield rose to 4.449%.
According to Chinese national media, the Chinese deputy prime minister described Sunday’s meeting as “fun, detailed and constructive,” calling it “substantial progress has been made and a significant consensus has been reached.”
Treasury Secretary Scott Bescent said Monday morning he hopes to have more discussions on trade to meet with China’s Okal again in the coming weeks.
“In the coming weeks, we will imagine meeting in a more fully agreed position to hold a meeting again,” Bescent said on CNBC’s “Squawk Box.”
The contract with China, one of the top US trading partners, is seen as a relief for investors worried about the high 145% tariffs, which will severely limit trade, raise prices and hurt the US economy.
“Most Preferred Countries” for Drug Pricing
President Donald Trump said he would sign an executive order to enact “most preferred national” policies for drug pricing. He revived the plan from his first term, saying that he would “reduce prescription and drug prices by 30% to 80% almost immediately.”
“I will enact policies in the country that the United States is the most preferred country that pays the same price as the country that pays the lowest prices in the world,” Trump said in his post on True Society. “Our country will ultimately be treated fairly and citizens’ healthcare costs will be reduced by numbers they have never even thought about before.”
Cryptocurrency
MicroStrategy founder and executive director Michael Saylor announced that he had acquired 13,390 Bitcoin for approximately $1.34 billion from May 5-11.
MicroStrategy is now known as a strategy.
Bitcoin last increased by 0.27% to $104,319.50.
This story has been updated with new information.
Medora Lee is a money, market and personal finance reporter for USA Today. You can contact her at mjlee@usatoday.com and subscribe to our free daily money newsletter for personal finance tips and business news every Monday through Friday.
