Stocks soar after U.S. and China agree to temporarily slash tariffs

Traders enactment connected the level of the New York Stock Exchange (NYSE) astatine the opening doorbell connected May 8, 2025, successful New York City. Stocks surged connected Monday aft China and the U.S. clinched a impermanent woody connected tariffs. Timothy A. Clary/AFP via Getty Images hide caption

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Timothy A. Clary/AFP via Getty Images

Stocks opened sharply higher Monday aft the U.S. and China announced a impermanent break from triple-digit tariffs that had brought overmuch of the commercialized betwixt the 2 countries to a standstill successful caller weeks.

The Dow Jones Industrial Average soared much than 1,000 points, oregon astir 2.5%, soon aft the opening bell, portion the S&P 500 scale gained 2.6%.

The surge successful stocks travel aft the 2 countries agreed to slash the crippling tariffs for 90 days pursuing talks successful Geneva implicit the weekend. The taxation connected Chinese imports to the U.S. volition driblet from 145% to 30% portion the tariff China charges connected U.S. goods volition autumn from 125% to 10%.

The intermission comes aft galore businesses that trust connected imports had halted deliveries to debar paying a triple-digit tax. Cargo postulation astatine the Port of Los Angeles past week had fallen by much than a 3rd from a twelvemonth ago, raising the imaginable of proviso shortages successful the adjacent future.

The remaining tariffs are inactive importantly higher than Americans were utilized to paying, however, earlier President Trump launched his commercialized war. And due to the fact that the tariff alleviation has an expiration day portion negotiations continue, determination is inactive sizeable uncertainty implicit what the commercialized scenery volition look similar successful 3 months.