The Great Trade Tariff Saga of 2025 continues…
On Monday, in a joint statement from Geneva, it was announced that the United States and?China had agreed to a 90-day pause on the?tariffs they had put in place over the last month. In the interim, they are, “Moving forward in the spirit of mutual opening, continued communication, cooperation, and mutual respect.”
What exactly this means, no one knows. But it sounded good. And it gave investors a ‘warm and fuzzy,’ which is exactly what they needed.
For practical purposes, U.S. tariffs on Chinese imports will be cut to 30 percent from 145 percent, and China’s tariffs on U.S. imports will be cut to 10 percent from 125 percent.
Wall Street celebrated the news with concerted buying. On Monday, the S&P 500 closed the day with a 3.26 percent gain and the NASDAQ finished with a 4.35 percent gain.
How pleasant. The Liberation Day dip has been vanquished. The S&P 500 and the NASDAQ are both back to where they started the year. Continue reading