US, China agree to 90-day tariff cuts in Geneva talks; Dow, S&P 500 & Nasdaq Futures surge as markets react positively
Following US-brokered ceasefire talks between India and Pakistan, China has stepped in to support lasting peace. Simultaneously, the US and China have agreed to cut tariffs for 90 days, boosting global markets. Both moves signal rising diplomatic engagement.
The United States and China have made two major diplomatic moves over the weekend¡ªone concerning economic policy and the other focused on South Asian stability. While markets responded positively to the joint tariff reduction announced in Geneva, both nations also turned their attention to the ongoing tensions between India and Pakistan. China expressed its willingness to support and mediate talks toward a lasting ceasefire, a position similar to the one recently taken by US President Donald Trump.
China echoes Trump¡¯s call for peace
After President Trump announced a ceasefire agreement between India and Pakistan, China stated its readiness to maintain communication with both countries to help achieve a comprehensive and lasting ceasefire. Chinese Foreign Ministry spokesperson Lin Jian said that China had noted the reports and believed peace between India and Pakistan served their long-term interests and promoted regional stability.
Chinese Foreign Minister Wang Yi also spoke separately to Pakistan¡¯s Deputy Prime Minister and Foreign Minister Ishaq Dar and Indian National Security Adviser Ajit Doval. China called for restraint and continued dialogue, adding that both nations were neighbours who must work together to avoid renewed conflict.
Trump had earlier stated that the recent hostilities could have resulted in mass destruction and death. He thanked the leadership of both India and Pakistan for reaching a ceasefire, noting the US would now work on increasing trade with both.
US-China tariff reductions drive market rally
Markets saw a sharp upturn after the US and China released a joint statement post tariff talks in Geneva. The Dow futures rose by 850 points, while the S&P 500 and Nasdaq futures climbed 150 and 650 points respectively. As per the agreement, the US will reduce tariffs on Chinese goods from 145% to 30% for 90 days. In return, China will lower tariffs on US goods to 10% for the same duration.
US President Donald Trump | Credit: X
This temporary easing of trade tensions also impacted global commodity markets. Brent crude crossed $65 per barrel, indicating a sharp rise. On the other hand, gold prices fell by 2.5%, dipping below $3,300 an ounce. The US 10-year bond yield also hit a one-month high at 4.43%.
Diplomacy and trade: Parallel paths to stability
While the US and China addressed tariff issues over the weekend, they simultaneously showed an active interest in fostering peace between nuclear neighbours India and Pakistan. US Secretary of State Marco Rubio confirmed that he and Vice President JD Vance had engaged with senior Indian and Pakistani officials over the past 48 hours, with Prime Ministers Narendra Modi and Shehbaz Sharif also involved.
Though the US had earlier distanced itself from the India-Pakistan issue, Trump's involvement resulted in the announcement of the ceasefire. With China now stepping in, both powers appear to be pushing for stability in a region marked by repeated tension.
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Nancy Jaiswal is a journalist who started her career in reporting and has covered both hard and soft news. From serious city news developments to lighthearted lifestyle pieces, she has written on almost everything hapenning in India (except maybe alien invasions¡ªyet!). For her, writing isn¡¯t just work; it¡¯s a passion, an obsession, and sometimes the reason she forgets to reply to texts.
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