Global stock markets have skyrocketed in the wake of a trade ceasefire between the US and China.
The agreement was announced early on Monday, implementing a 90-day cooling-off period between the two world’s biggest economic superpowers, leading to a temporary termination of the tariff war that caused the massive sale of financial markets last month.
As President Donald Trump hiked tariffs in countries around the world, US tariffs on Chinese imports, which were jacked at 145% last month, have been reduced to 30%, with Beijing retaliating from 125% to just 10%.
“We both have an interest in balanced trade, and the US will continue to move towards it,” Treasury Secretary Scott Bescent said after consultations with Swiss Chinese officials.
What is the trade ceasefire with China?
Treasury Scott Bescent, Right, Trade Representative Jamie Songreer took part in a press conference in Geneva on Monday, May 12, 2025 after a two-day closure door discussion on trade between the US and China.
The initial agreement provided immediate relief to the stock market, but that is the most important potential political reward as the president aims to pass a drastic agenda through Congress and retain the majority in Congress in next year’s midterm elections.
The ceasefire with China follows days after the first trade agreement with the UK. This is the first time since Trump implemented tariffs last month. The president touted that the agreement with London would be “the first of many.”
“This is a positive first step,” veteran Republican strategist and communicator Ryan Williams told Fox News.
The Secretary of Commerce says more transactions following the US-UK trade agreement “helps our economy.”
Trump’s approval rate has been slipping since returning to White House power almost four months ago, and is now underwater in most referendums.
It shows Trump’s approval rating in the negative realm, which is aggravated from the position of the president’s poll when he launched his second mission at the White House in late January.
Promoting Trump’s decline in polls was an increasing number of Americans’ concerns about the economy and inflation, a pressing issue that he was far below the majority of the presidency’s approval rating.
Trump received 44% approval and 55% disapproval in the latest Fox News National Poll, which took place April 18-21.
Moreover, beyond the top line, the president’s approval was registered at 38% in the economy and only 33% in inflation and tariffs.
The front and center announced Trump’s blockbuster tariff announcement in early April, sparking a trade war with some of the country’s top trading partners, causing massive sales in financial markets, raising concerns about the recession.
Poll: Where Trump stands for second presidency for 15 weeks
As he discussed his tariffs shortly after he announced what he called “Liberation Day,” the president touted “these countries are calling us and kissing my A-.”
“They want to do a trade.” Please, please, please. I’ll do anything. I’ll do anything, sir! ” Trump insisted.
Will a tariff ceasefire with China give President Donald Trump a political bounce? (Fox News)
A month later, Trump will finally have the opportunity to show concrete results.
The president touted in a social media post Monday morning as “There is no inflation!!! LOVE, DJT.”
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“President Trump argued that his agenda requires time for adjustments and trading. He was given a period to prove that his plans are working, and the first major trade deal with a country like the UK is a sign that at least some work is being done behind the scenes.”
Williams added that the president “have to back it up more, but that’s a positive first step in securing other deals.”
Paul Steinhauser is a political reporter based in swing state in New Hampshire. He covers campaign trails from coast to coast. ”
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