The United States and China announced today that they agreed to a 90-day pause on most of the tariffs they had imposed on each other last month.
During the pause, U.S. tariffs on Chinese imports will be cut to 30% from 145%, while China will drop its tariffs to 10% from 125%.
The U.S. tariffs reflect a base 10% tariff that remains on all imports, plus a 20% tariff President Donald Trump imposed earlier this year to punish China for creating fentanyl-related chemicals, according to a statement from the White House.
The announcement comes after officials from the two countries met in Geneva, Switzerland, over the weekend for face-to-face talks on the tariffs. Negotiations are expected to continue between the two countries.
Stocks surged on the news of cutting the tariffs. The Dow Jones Industrial Average gained more than 1,000 points, or around 2.5%, while the S&P 500 index gained 2.6%, as of the time this article was posted.
