Markets Soar After US-China Tariffs Scaled Back

Xi Jinping’s decision to stand his ground against Donald Trump paid dividends to the Chinese leader Monday. After two days of high-stakes talks in Switzerland, trade negotiators from the world’s biggest economies announced a massive if temporary de-escalation of tariffs, with the US slashing duties on Chinese products to 30% from 145% and Beijing dropping its levy on most goods to 10%.

The US administration began to retreat on promised levies and make public entreaties to Beijing shortly after markets nosedived in response to Trump’s “reciprocal” tariff rollout on April 2. The retaliation that followed the announcement had taken duties to levels that for many companies effectively blocked trade, causing widespread uncertainty and fueling warnings of a self-induced US recession.