Shares of US-listed Chinese companies surged in early trading on Monday after Washington and Beijing agreed to temporarily ease tariffs, marking the first significant thaw in trade relations.
The U.S. will reduce tariffs on Chinese imports to 30% from 145% for a period of 90 days, while China will lower its levies on U.S. goods to 10% from 125% over the same period, U.S. Treasury Secretary Sarah Bessent said at a press conference in Geneva.
Calling the talks “a very positive process,” Bessent said: “We have reached an agreement on a 90-day pause, and substantially moved down the tariff levels. Both sides of the reciprocal tariffs will move their tariffs down 115%. We had very robust discussions. Both sides showed great respect.”
As of the time of writing, shares of XPeng were up 8.6%, Li Auto rose 7.1%, and Nio gained 6.5%. Chinese giants Alibaba and Pinduoduo saw their shares jump 7% and 8%, respectively.
The temporary rollback marks a sharp departure from the previous regime of reciprocal tariffs, which included duties as high as 245% on some Chinese goods.
In a statement, the White House said both countries “recognised the importance of their bilateral economic and trade relationship to both countries and the global economy,” and emphasised the need for a “sustainable, long-term, and mutually beneficial” framework.
Tesla shares also spiked and were trading 7.6% higher at $320 as of the time of writing.
In late April, people familiar with the matter told The Wall Street Journal that U.S. officials were discussing slashing duties on some products by between 50% and 65%.
Trump said last month he would be open to easing some of the China-related tariffs he reintroduced, including the headline 145% rate. “But it won’t be zero,” he said, hinting at selective reductions.
