Stocks soar after U.S. and China agree to temporarily slash tariffs
Stocks opened sharply higher Monday after the U.S. and China announced a temporary break from triple-digit tariffs that had brought much of the trade between the two countries to a standstill in recent weeks.
The Dow Jones Industrial Average soared more than 1,000 points, or around 2.5%, shortly after the opening bell, while the S&P 500 index gained 2.6%.
The surge in stocks come after the two countries agreed to slash the crippling tariffs for 90 days following talks in Geneva over the weekend. The tax on Chinese imports to the U.S. will drop from 145% to 30% while the tariff China charges on U.S. goods will fall from 125% to 10%.
The pause comes after many businesses that rely on imports had halted deliveries to avoid paying a triple-digit tax. Cargo traffic at the Port of Los Angeles last week had fallen by more than a third from a year ago, raising the prospect of supply shortages in the near future.
The remaining tariffs are still significantly higher than Americans were used to paying, however, before President Trump launched his trade war. And because the tariff relief has an expiration date while negotiations continue, there is still considerable uncertainty over what the trade landscape will look like in three months.
“It was a great relief for about five minutes,” says Bonnie Ross, a clothing importer, based in New York.
Ross had pulled two cargo containers off ships in China when the 145% tariffs took effect. Now she’s scrambling to get as much merchandise to the U.S. as she can while the lower tariffs are in place.
“Now it’s going to be a rush because everybody wants it out in the next 90 days,” Ross says. “What is going to happen to the freight rates?”
Rick Davies, singer and co-founder of Supertramp, has died
The British musician co-founded the rock band Supertramp, which spurred hits like "Give A Little Bit" and "The Logical Song" in the 1970s.
Rupert Murdoch buys out 3 of his kids, cementing his conservative media empire
The owner of Fox News, the Wall Street Journal and dozens of other media properties has settled a legal fight with three of his own children over who would control his companies after his death.
Estate of Jeffrey Epstein gives Congress ‘birthday book’ allegedly signed by Trump
Democrats on the House Oversight Committee said the book included a tawdry drawing and note that appeared to include President Trump's signature. Trump had previously denied its existence.
DHS launches immigration crackdowns in Chicago, Boston
These announcements by DHS are just the latest escalation of federal action in U.S. cities including Los Angeles and Washington, D.C. — all led by Democrats.
The school shooting industry is worth billions – and it keeps growing
The effort to keep schools safe from mass shooters has ballooned into a multibillion dollar industry. Companies are selling school districts assurance with high-tech products.
New teen thriller ‘Sisters in the Wind’ finds drama in hidden identities
Angeline Boulley, author of the hit Firekeeper's Daughter, writes thrillers set in Native American communities in northern Michigan, like the ones where her family has lived for generations.
