The Trump administration announced it had reached a trade agreement with China following trade negotiations in Switzerland over the weekend. Under the deal, so-called reciprocal tariffs will drop from over 100% to 10% on both sides for 90 days. The Trump administration will keep 20% fentanyl-related tariffs on China in place. Global stocks rallied after the terms of the deal were announced Monday morning, with market watchers expecting more positive developments for markets on the back of the news. U.S. Treasury Secretary Scott Bessent (R) and U.S. Trade Representative Jamieson Greer hold a news conference in Geneva on May 12, 2025, to give details of “substantial progress” following a two-day closed-door meeting between U.S. and China top officials aimed at ending the tariff war. Fabrice Coffrini | Afp | Getty Images Stock chart icon
Analysts and strategists said on Monday that the new U.S.-China arrangement could reignite risk-on sentiment, benefiting stocks and U.S. assets.
In a note to clients on Monday, Tai Hui, chief market strategist for Asia Pacific at JPMorgan Asset