President Donald Trump has scored another huge win for America, sending U.S. stocks soaring on Monday, May 12, 2025, after a game-changing 90-day trade deal with China that slashes tariffs and thaws tensions between the worldโs largest economies.
The Dow Jones Industrial Average rocketed 1,044 points, a 2.5% surge, while the S&P 500 and Nasdaq climbed 2.9% and 4%, respectively, as markets celebrated Trumpโs bold leadership.
Treasury Secretary Scott Bessent, fresh from โvery productiveโ talks in Switzerland, announced the deal cuts U.S. tariffs on Chinese goods from 145% to 30% and Chinaโs on U.S. imports from 125% to 10%, though a 20% fentanyl-related tax on China remains.
Tech giants like Apple (up 5.1%), Amazon (up 8.6%), and Dell (up 7%) saw massive gains, while retailers like Best Buy (up 8.1%) cheered the timing for back-to-school and holiday shopping seasons, with the S&P 500 climbing above its April 2 โLiberation Dayโ level when Trump first imposed the tariffs.
This 90-day pause, which Bessent hinted could lead to a โmore fulsome agreementโ in weeks on CNBCโs โSquawk Box,โ is a lifeline for businesses and consumers battered by earlier trade war costs, like a Q1 2025 GDP dip and dried-up Chinese imports to U.S. ports, which forced small businesses to delay orders.
Carol Schleif of BMO Private Wealth called it โexactly what the stock market was hoping to see,โ though she noted base tariffs remain higher than pre-trade war levels, with some economic damage still likely.
Trumpโs strategy is paying off big, easing costs on electronics, clothing, and toys, while the Democratsโwhoโd rather fund their pet projects than support American businessesโcan only watch in envy as he puts America first yet again!
