Vancouver –In a major step toward easing global trade tensions, the United States and China have announced a 90-day reduction in tariffs, following intense negotiations in Geneva, Switzerland over the weekend. According to a joint statement released Monday, the U.S. will reduce tariffs on Chinese goods from 145% to 30%, while China will slash its tariffs on American products from 125% to 10%.
This temporary measure is being hailed as a potential turning point in the ongoing trade dispute between the world’s two largest economies. While details are still emerging, the move is intended to create space for continued dialogue and negotiation on deeper trade issues.
The global financial markets responded swiftly and positively. During Asian afternoon trading hours, U.S. stock futures surged — Dow Jones futures jumped more than 2%, S&P 500 futures rose nearly 3%, and Nasdaq Composite futures climbed over 3.5%. The reaction echoed across Asian markets as well, with Hong Kong’s Hang Seng index ending the day up by about 3%.
Meanwhile, the U.S. dollar gained strength against major currencies, and gold prices dropped — a sign that investors are feeling more confident amid the de-escalation of trade hostilities.
Economists and market analysts caution, however, that the 90-day window is short, and the long-term success of this agreement hinges on follow-up negotiations. Still, the temporary tariff relief offers breathing room for companies and consumers affected by the costly trade barriers imposed in recent years.
For Surrey businesses involved in international trade, particularly those dealing with U.S. and Chinese imports and exports, the news brings a dose of cautious optimism. Local entrepreneurs may see reduced costs and improved market stability if the momentum continues.