Big Tech, Wall Street, small enterprises, and consumers can take a moment to exhale as the strain from former President Donald Trump’s tariffs subsides—at least for the time being.
In the early hours of Monday, Treasury Secretary Scott Bessent revealed that the United States and China had come to a temporary trade arrangement during discussions in Geneva over the weekend. The agreement entails a 90-day suspension of rising tariffs, allowing both parties to pursue further negotiations.
According to the agreement, the U.S. will decrease Trump-era reciprocal tariffs on Chinese imports from 145% to 30%. In exchange, China will cut its tariffs on U.S. products from 125% to 10%. This reciprocal reduction effectively lowers tariffs by 115 percentage points on both ends.
Markets reacted quickly and favorably to the announcement. On Monday morning, technology stocks spearheaded a market upswing. Tesla and Amazon shares soared more than 7%, while Apple increased by 6%. Meta and Nvidia each enjoyed a 5% rise, and electronics retailer Best Buy experienced a 10% rise in its stock value.
Trump’s original 145% tariffs had previously thrown the stock market into disarray in early April, leading to a four-day decline. The high tariffs also significantly disrupted supply chains in the tech sector, as companies rushed to mitigate the financial burden. Many, including Apple, Dell, and Microsoft, expedited shipments ahead of the tariff deadlines to lessen the fiscal impact.
The tariffs were especially challenging for electronics and technology companies that heavily depend on Chinese manufacturing. For example, security camera firm Wyze recently disclosed that it incurred $255,000 in tariffs on a $167,000 shipment due to the trade conflict.
Even with the notable reduction, the new 30% tariff remains above the pre-Trump rate of 10%. And with the agreement poised to lapse in 90 days, uncertainty continues to hang over the situation. If negotiations break down, businesses and consumers may once again confront high tariffs and economic consequences.