U.S. stock markets soared on Monday, May 12, after the U.S. and China announced a pause on “reciprocal tariffs” for 90 days while the two countries work out a trade deal. President Donald Trump cut tariffs on China to 10%, which is the baseline level that his administration says will remain in place for trading partners even after deals are signed.
China is still subject to 20% “fentanyl-related” tariffs, which bring the total tariffs on the world’s second-largest economy to a relatively manageable 30%. After the pause on China tariffs, shares of companies that are among the major importers from the country rallied yesterday.
