Global stock indices are showing significant gains following news of an agreement between the United States and China to mutually reduce tariffs. The market response was immediate, with investors welcoming progress in trade negotiations between the world’s two largest economies, reports the Baltimore Chronicle, citing Financial Times.
The deal was reached as part of a new phase in the trade dialogue, during which both parties agreed to gradually roll back previously imposed tariffs according to a mutually approved schedule. This development comes after months of consultations and reflects a shared intention to ease tensions in global commerce.
The Dow Jones Industrial Average rose by 0.8%, the S&P 500 climbed 0.7%, and the tech-heavy Nasdaq gained more than 0.9%. A similar trend was observed across Asian markets: Hong Kong’s Hang Seng index jumped 2.7%, while Shanghai’s SSE rose 0.9%.
Exporters and manufacturing companies that had been under pressure due to heightened tariffs were among the first to benefit. Shares of firms in the automotive, electronics, and high-tech sectors surged amid expectations of improved trade conditions.
Officials from both governments emphasized that the agreement would be implemented in stages and would depend on the fulfillment of obligations by each side. Beijing called for a complete removal of tariffs, while Washington remained cautious, highlighting the need for reliable guarantees.
This move is seen as an attempt to stabilize economic relations, which have been strained since the onset of the trade war in 2018. Although a comprehensive resolution has not yet been reached, the easing of tensions has already brought optimism to financial markets worldwide.
Earlier we wrote that Trump cuts tariffs on UK goods, proposes China duty reduction.