- S&P 500 futures rallied 2.77% this morning after U.S. Treasury Secretary Scott Bessent announced a drastic reduction in trade tariffs on China. All the major indexes in Europe and Asia went up on the news. But China's markets are rising higher than U.S. stock—an indicator that investors think the tariff war damaged American companies more than Asian ones.
Speaking in Geneva where the U.S. and China had been negotiating all weekend, U.S. Treasury Secretary Scott Bessent said the U.S. will lower tariffs on China to 30% (down from 145%), and China will lower tariffs on the U.S. to 10% (down from 125%). The reductions will last for 90 days while further trade talks continue. A separate tariff of 20% on China, intended to deter the export of fentanyl, will remain.
