US, China Agree to Lower Tariffs in Temporary Trade Truce
US trade representative Jamieson Greer and Treasury Secretary Scott Bessent in Geneva on May 12.
Photographer: Fabrice Coffrini/Getty Images
Good morning. Markets breathe a sigh of relief as the US and China agree to a temporary truce in their trade war. Donald Trump vows to cut US drug prices. And the president may get a very luxurious gift from Qatar. Listen to the day’s top stories.
The US and China agreed to slash levies on each other’s products in a move to de-escalate a tariff war that led to a slump in trade across the Pacific Ocean. Treasury Secretary Scott Bessent hailed the trade discussions as “very robust and productive.”
Markets across the world cheered the move, with investors rushing back into stocks and powering a surge in S&P 500 futures. US Treasuries and gold tumbled, while the dollar hit a one-month high versus the euro and the yen. Read our explainer on what Trump’s tariff campaign meant to achieve.