Tue May 13 08:30:00 UTC 2025: ## US and China Agree to Significant Tariff Cuts, Sending Stocks Soaring

**NEW YORK** – In a major development easing US-China trade tensions, both nations have agreed to a significant, temporary reduction in reciprocal tariffs. The U.S. will lower its tariff rate on Chinese imports to 30%, down from a staggering 145%, while China will reduce its duty rate on American goods to 10%, a decrease from 125%. The agreement, reached while negotiations for a broader trade deal continue, is expected to have a positive impact on various sectors.

Companies involved in manufacturing goods in China for the US market, including those producing lower-level semiconductors, footwear, and electronics such as Apple iPhones, stand to benefit significantly from the tariff reduction. Aerospace giant Boeing, which recently faced retaliatory actions from China, is also expected to see positive repercussions.

The news has been greeted with enthusiasm on Wall Street, with stock futures surging sharply this morning. The S&P 500 is poised to open up 3%, the Dow Jones Industrial Average is projected to rise by approximately 1,100 points, and the tech-heavy Nasdaq 100 is showing the strongest gains, up 4%. The temporary tariff cuts represent a crucial step towards de-escalating trade tensions between the world’s two largest economies.

Read More