On Monday, an agreement reached in Geneva between the two countries provides for a 90-day reduction of tariffs. Under the deal, the U.S. will temporarily suspend its steep 145% tariff on Chinese goods, lowering it to 30%. In return, China will reduce its 125% tariff on U.S. imports to 10%.
Following the announcement, tech stocks surged significantly in pre-market trading. On the Nasdaq, shares of Chinese exporters Temu and Alibaba rose by nearly 9%. Major U.S. tech companies that depend on Chinese manufacturing and supply chains — including Apple, Amazon, Tesla, Nvidia, AMD, and Meta — saw their shares climb between 5% and 6%. Nasdaq Futures also recorded a 3.8% increase.
However, the deal does not address the recent removal of the “de minimis” exemption in the U.S., which previously waived tariffs on imported goods valued under $800. The removal of this exemption may result in additional tariff burdens on certain products.
Overall, this temporary concession is being interpreted as a positive signal of easing trade tensions and has lifted investor sentiment. The favorable shift for leading technology firms may trigger a broader market rally in the coming days.
