
Temporary pause in US-China trade war
The US and China, the world's largest and second-largest economies, have agreed to bring down their tariffs on imports from the other from 145% and 125% to 30% and 10%, respectively. The arrangement, which was reached by the two countries in Geneva on Monday, is for 90 days as of now, a period during which they are expected to arrive at a more detailed arrangement. The latest détente between these two countries marks yet another turn in the ongoing drama between the US and China, where each side was expected to suffer heavy losses as they indulged in brinksmanship over complete economic decoupling — which is what would have happened had the tariffs stayed in three digits.
To be sure, it is premature to see the current arrangement as something cast in stone or restoration of status quo ante. Experts have pointed out that even the current tariff levels are higher than what they were before the second Trump presidency. There is no reason to believe that an agreement will be worked out in the next three months. What does all this mean for US-China and the world at large? Three things can be flagged at the moment.
Trump's mercantilism was not just a challenge to the multilateral global order but also the American financial markets. Big Finance has made a fortune for itself despite a lot of working-class Americans becoming worse off with a rise in US trade deficits. The fact that Trump has had to back off by quite a few steps because of the financial market meltdown shows that Wall Street has not lost its power in the US.
China, if the current tariff levels persist, will still enjoy a large advantage in bilateral talks vis-à-vis the US and in the global manufacturing landscape. But the events in the last couple of months are only likely to further spook non-Chinese manufacturers into finding locations that are less likely to draw the ire of US mercantilism than China (which should help boost India's China-plus-one appeal). To be sure, the world will increasingly have to deal with China's home-grown brands which have emerged as able competitors in many sectors.
The rest of the world, India included, will face both headwinds and tailwinds from this ongoing churn. The investment climate will continue to be uncertain thanks to Trump's flips-flops, but like the Sino-US thaw shows, the world can't go on without trade. It's just that it will become more transactional at a multi-dimensional level.
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Time of India
28 minutes ago
- Time of India
US stock market today: S&P 500 flat, Dow Jones down, Nasdaq‑100 up— biggest gainers, losers as Wall Street eyes US-China trade talks and potential tariff deal
US stock market live update: Dow Jones drops 185 points as investors await US-China trade talks progress- The US stock market opened slightly weaker on Monday, June 9, as Wall Street turned its attention to critical trade talks between the United States and China. Early trading saw the Dow Jones Industrial Average fall by 185 points, or about 0.5%, marking a cautious start to the week. The S&P 500 dipped 0.1%, while the Nasdaq Composite edged up slightly by 0.1% around 9:35 a.m. Eastern Time. Traders are closely watching the developments in London, where senior officials from both countries are meeting to ease long-standing trade tensions. The discussions aim to address a range of economic disputes and possibly roll back mutual tariffs that have been weighing on global supply chains for years. How are the major indices performing? S&P 500 (SPY): Sitting steady at about 599.15, virtually unchanged from the previous close, remaining just under the 6,000 mark. Dow Jones Industrial Average (DIA): Dropping roughly 0.21% to 427.47, reflecting some investor caution. Nasdaq-100 (QQQ): Climbing around 0.16% to 530.77, fueled by strength in the tech sector. Which stocks are making the biggest moves? Top gainers today include: by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Here's What a New Roof Should Cost in 2025 Learn More Undo Warner Bros Discovery: Surging 7-9% following news of a company split. IonQ: Up about 3% after announcing an acquisition of Oxford Ionics. Merck: Rising 1.1%, boosted by positive trial results. Nvidia: Gaining between 1.3% and 2.3%, riding the wave of AI enthusiasm. Qualcomm: Jumping 4.4% on completion of its Alphawave IP purchase. Apple: Adding 0.7%, supported by new AI features unveiled at the WWDC event. Biggest losers include: Robinhood: Dropping 7.4% after being excluded from the S&P 500 index. Tesla: Down between 0.3% and 2%, impacted by a recent downgrade and fallout from Musk-related news. EchoStar: Falling 8.2% amid bankruptcy rumors. Live Events Why are the US and China meeting now — and what's at stake for the stock market? This week's US-China trade talks are seen as pivotal for the global economy. Tariffs imposed in past years have disrupted everything from electronics to heavy equipment. Though those tariffs are currently paused, no permanent deal has been reached. Analysts believe that progress in these talks could help avoid a potential economic slowdown or even a recession, especially if they result in the reduction or removal of tariffs on both sides. A positive outcome could also reignite investor confidence and fuel another leg up in the US stock market rally. These modest moves reflect investor hesitancy. Market players are clearly waiting for concrete news before making big decisions. 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What's important now is whether these paused tariffs are finally lifted. This could significantly improve the flow of goods, lower costs, and potentially lead to more business investments, especially in sectors like tech, agriculture, and manufacturing. Could US-China trade deals shape the next market trend? Absolutely. Any meaningful breakthrough in US-China trade negotiations could serve as a key catalyst for markets. Investors are looking for long-term clarity, not just temporary relief. If Monday's talks in London show signs of real progress, we could see increased investor confidence, reduced market volatility, and fresh momentum across Dow Jones, S&P 500, and Nasdaq. But without a deal, continued uncertainty could weigh on the markets in the coming weeks. What's driving the market today? Trade talks between the U.S. and China in London continue to shape investor sentiment, contributing to the Dow's decline and a slight Nasdaq boost. Inflation concerns remain front and center , with traders awaiting this week's CPI and core PCE data releases. Expectations suggest the Federal Reserve may hold interest rates steady for now. Sector trends show technology stocks powering the gains, while healthcare lags behind. What should investors watch next? Investors should keep a close eye on the statements or outcomes from the US-China meetings. Any mention of progress on tariff rollbacks, trade agreements, or economic cooperation could trigger immediate market reactions. It's also worth noting that the Federal Reserve's next move, broader economic indicators, and the 2024 US election climate remain in focus as secondary factors influencing the market direction. FAQs: Q1: Why did the Dow Jones fall 185 points today? The Dow Jones dropped due to investor caution ahead of the US-China trade talks. Q2: What are US-China trade talks about? The talks aim to ease tariffs and settle long-running trade disputes affecting the global economy.


Time of India
28 minutes ago
- Time of India
The hidden job crisis: 25% of Americans are functionally unemployed and it's worse than it sounds
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The Hindu
30 minutes ago
- The Hindu
U.S., China begin key trade talks in London
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