US and China Announce 90-Day Tariff Pause, Boosting Markets

US-China Trade War Truce

• 🤝 After weekend trade talks, the US and China have agreed to a 90-day pause on tariffs, stepping back from a full-blown trade war.
• 📉 Duties will be reduced by 115%, with US tariffs on Chinese goods now at 30% and China's on US products at 10%.
• ⚠️ The Treasury Secretary stated that neither side desired a trade embargo.

Market Reaction to Tariff Pause

• 📈 NASDAQ futures surged by 3.6%, Dow futures by 2.3%, and S&P futures by 2.8% immediately following the announcement.
• 🌎 Investors expressed massive relief as the pause alleviates fears that President Trump's trade policies could trigger a global recession.

Impact on Businesses and Commodities

• 🛒 Walmart's CEO had previously warned President Trump that the trade war could empty shelves, noting that approximately 80% of toys sold in the US are made in China.
• 🛢️ The price of oil jumped 3.3% to $66 a barrel, recovering from months of weak trading, due to the positive trade news.

Presidential Trip and International Investments

• ✈️ President Trump is set to visit key oil-producing nations including Saudi Arabia, Qatar, and the UAE, marking his first international trip of his second administration.
• 💰 Saudi Arabia has committed to investing $600 billion in the US over the next four years.
• 🎁 Qatar has reportedly offered to gift the president a private jet worth $400 million, intended as a replacement for Air Force One.