Stocks soared Monday morning following a breakthrough agreement between the United States and China to temporarily ease steep tariffs that had stalled trade and disrupted global supply chains. The Dow Jones Industrial Average jumped over 1,000 points (about 2.5%) and the S&P 500 gained 2.6%, reflecting renewed investor optimism.
The agreement, reached during talks in Geneva over the weekend, reduces U.S. tariffs on Chinese goods from 145% to 30% and slashes China’s tariffs on American imports from 125% to 10%. The relief is set to last 90 days, giving businesses a narrow window to move goods under more favorable conditions.
Importers are rushing to capitalize on the temporary reprieve. Bonnie Ross, a New York-based clothing importer, had halted shipments when tariffs spiked but is now racing to get merchandise into the country. “It’s going to be a mad dash. Everyone wants their cargo out before the window closes,” she said.
Jay Foreman, CEO of a U.S. toy company, echoed the urgency. “We’ve been sitting on shipments at the ports. A 30% tariff is painful but survivable. Now the question is how fast we can move inventory,” he said. Foreman is considering doubling factory shifts to meet potential holiday demand before tariffs could rise again.
While the deal brings temporary relief, uncertainty remains high. Businesses are hedging bets on how long the reduced tariffs will last—and whether further negotiations will bring a permanent resolution.