Catenaa, Monday, May 12, 2025- US stocks such as Tesla and Nvidia, which were battered by the trade war between Trump and China, were trading higher on Monday after talks reduced tariffs.
Two days of trade talks between the US and China have led to a 90-day pause on tariffs, with duties set to drop by 115 percentage points on both sides by Wednesday, while President Donald Trump and Chinese President Xi Jinping are likely to talk in the coming days.
“Yesterday, we achieved a total reset with China,” Trump said Monday morning at the White House while also announcing his plans to talk with President Xi soon, “maybe at the end of the week.”
US stocks gained on the optimism of a temporary deal between the two countries, S&P 500 was up 3%, Dow Jones by 2.5% and Nasdaq by 4.2% by early afternoon.
Stocks such as Tesla and Nvidia that took a hit with tariffs gained on Monday, Tesla gained by almost 7%, Nvidia by 5.2%, Amazon by 8%, and Apple by 5.8%.
The temporary deal will reduce American tariffs on Chinese goods, which currently run as high as 145%, to 30% and slash China’s retaliatory duties from 125% to 10%.
“Neither side wants a decoupling,” Treasury Secretary Scott Bessent said Monday morning to reporters after saying Sunday that the talks had yielded “substantial progress.”
He added that the 90-day pause could also be extended, saying, “As long as there is good faith effort, engagement, and constructive dialogue, then we will keep moving forward.”
