The share market shoots as Trump gives first in tariffs to China

• A WSJ article suggests that the White House is considering cutting tariffs to China.
• The measure would reduce tariffs to China by more than 50% in certain cases.
• The Dow Jones and the Nasdaq shoot with the news of lower tariff fees in China.
• Besent asks for a “balance” in international trade in a speech on Wednesday.

UPDATE: When the reporters were asked after their speech, Besent then denied that the White House would unilaterally reduce tariffs to China, saying instead that the process would be “mutual.” In addition, Besent said that the White House was looking beyond tariffs towards non -tariff barriers to US assets and dependence on Chinese corporations of government subsidies. He said that a complete agreement with China could take two to three years, but that a general framework with India was already taking shape.

The Trump administration admitted on Wednesday what Treasury Secretary Scott Besunt had alluded to Tuesday: that he is considering reducing the rates of tariffs to China in the face of the strong pressure it has caused in American companies and market stock market

In what seems to be a coordinated filtration, multiple White House officials told the Wall Street Journal that Donald Trump is considering cutting the current 145% tariff rate on Chinese goods in more than half in certain cases. This could place the tariff rate weighted by commerce on Chinese goods closer to 54% that Trump introduced on April 2, what the White House called Liberation Day.

The stock market shoots at the possibility of reducing tariffs to China

The actions are euphoric with the news, although nothing has changed so far. The Nasdaq Composite exploded more than 4%. The industrial average Dow Jones (DJIA) advanced 2.4%, and the S&P 500 jumped 3% in mid -morning.

The bond market was also affected by the news. Investors sold US treasure bond holdings to 12 months to 5 years and bought bonds at 10 and 30 years in their place. This pushed the 30 -year bonus performance almost 2% to 4.78%.

Almost 80% of Dow Jones’ actions have had profits. The index has been led by Boeing (BA) and Amazon (AMZN), both with profits greater than 6%. Nvidia (NVDA) and American Express (AXP) also won more than 5%, while Apple (AAPL), Salesforce (CRM), JPMorgan (JPM), Microsoft (MSFT) and Goldman Sachs (GS) also gained more than 3%.

Besent asks for a more equitable commercial regime

Treasury Secretary Scott Besent gave a speech on commerce at the International Finance Institute on Wednesday morning in which he presented the case of the Administration for a new global commercial regime that favors a “balanced” approach.

Besent said that Bretton Woods architects who established international trade rules after World War II recognized the need for economic coordination. However, “everywhere we look at, we see imbalance,” Besent said.

The Treasury Secretary said the Trump administration considers that the world commercial order suffers from an “excessive and persistent dependence of the United States for demand.” The White House, he said, would use tariffs to reduce that demand for foreign goods and create a more equitable pitch.

Besent mentioned that around 100 countries had approached the Administration to negotiate new bilateral trade agreements that, according to him, would be more “balanced.” This term seems to suggest a lower dependence on free trade and the desire that foreign nations directly reduce their commercial deficits with the United States.