Washington [US], May 13: Global stock markets surged on Monday after the U.S. and China agreed to slash their steep tariffs on each other for at least 90 days, tapping the brakes on a trade war between the world's two biggest economies that had fed fears of a global recession.
But the temporary pause did little to address the underlying schisms that led to the dispute, including the U.S. trade deficit with China and U.S. President Donald Trump's contention that Beijing has not done enough to address the U.S. fentanyl crisis.
While investors cheered the move, businesses were more hesitant, welcoming the relief but seeking more clarity.
Trump and his allies portrayed Monday's agreement as proof that his aggressive tariff strategy was paying dividends, after the U.S. struck preliminary pacts with Britain last week, and now China. The jury is still out on whether the deep underlying trade imbalances that have hollowed out U.S. manufacturing will be addressed.
Even U.S. Treasury Secretary Scott Bessent, who hammered out Monday's agreement with Chinese counterparts in weekend talks in Geneva, has acknowledged that it will take years to reset Washington's trade relationship with Beijing.
Source: Fijian Broadcasting Cooperation
