Both the U.S. and China have announced a temporary pause in tariffs for the next 90 days, and the deal is moving markets.
The announcement comes after a weekend of meetings in Switzerland, the Treasury Secretary, and the U.S. Trade Representative. China will reduce its tariffs from 125 percent to 10 percent. In return, the U.S. will lower tariffs on most Chinese goods from 145 percent to 30 percent.
The DOW, S&P, and NASDAQ futures are all up significantly this morning.
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“Applying significant broad-based tariffs on Mexico and Canada would be really a downside to the U.S. economy.”
Foreign trade partners, such as China and the European Union, are still purchasing U.S. commodities, but are becoming more cautious as the Trump Administration’s tariff deadline approaches in August.
