Trump Administration Declares Trade Victory Amid Stocks Surge
In a bold announcement on Monday, the Trump administration declared victory in the ongoing trade war with China, following a temporary economic ceasefire that sent the Dow Jones Industrial Average soaring by 1,100 points. Treasury Secretary Scott Bessent revealed an agreement for a 90-day pause in escalating tariffs, reducing duties from 145% to 30% on U.S. imports from China, while China will charge a 10% tariff on U.S. goods.
The agreement marks a significant shift as both nations aim to balance trade, with Bessent describing high tariffs as a detrimental "embargo." The Chinese government welcomed the reduced tariffs, urging the U.S. to avoid unilateral tariff hikes in the future.
While many celebrated the stock market’s positive reaction, critics like Harvard economist Dani Rodrik noted that the temporary measures do not address the underlying issues raised by the administration’s previous policies. Brooke Thomson from the Associated Industries of Massachusetts warned that the ceasefire does little to restore business confidence.
Despite ongoing concerns, U.S. Trade Representative Jamieson Greer expressed optimism for economic growth, while President Trump touted the tariffs as fueling job growth. However, crucial import taxes on steel and aluminum remain unchanged, leaving uncertainty ahead.
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