US–China slash tariffs, lift stocks on de‑escalation deal

Global equities rallied on Monday after weekend talks in Switzerland produced a provisional US‑China accord that slashes tit‑for‑tat tariffs imposed since January and suspends further hikes for 90 days. The United States will cut duties on Chinese goods to 30% from 145%, while Beijing will lower its retaliatory rate to 10% from 125% and scrap additional non‑tariff measures. Higher sector‑specific levies on steel, autos and a 20% surcharge targeting fentanyl‑linked trade remain. Washington warned the reductions could be reversed if progress stalls. The S&P 500 jumped 3.2%, the Dow added 2.8% and the Nasdaq surged 4.3%, erasing post‑tariff losses as investors welcomed the detente, which comes amid falling Chinese factory output and shrinking trans‑Pacific shipping volumes that had begun to dent growth on both sides.