Wall street rally: The trade agreement between the US and China in Geneva brought the US stock market bright. S&P made the longest jump of two months after March with the announcement of tariff cuts. Earlier, President Trump had indicated business talks with China in early April, after which there was some relief in the global market.

On Monday, China and the United States have announced that they will cut the tariffs placed over each other for the next 90 days. While the US has reduced the rate of tariff on goods coming from China to 30 percent to 30 percent, Beijing said that the tariffs above the goods coming from Washington are going to reduce the tariff from 125 percent to 10 percent.

America-China trade deal with enthusiasm in the market

Investors are very relieved from this announcement, but still they are waiting for more clarity. Significantly, when President Trump announced a tariff on his business partner countries on 2 April, there was a tremendous decline in the US stock market and there was heavy loss.

After that, on April 9, except China, it was announced to put a brake on the tariff for 90 days on the rest of the countries. Now the business agreement between the US and the UK and the consent on tariffs with China has brought new enthusiasm in the US stock market. S&P 500 and Nasdaq have then compensated their losses.

S.EdP’s big jump in two months

On Monday, the stocks of S&P to Nasdaq and Dau made the highest jump in one day after April 9. S&P raised so much in a day after March. The Shay of Dow Jones Industrial Average, 160.72 points, ie 2.81 percent, rose to 42,410.10 levels, which is the top level after 26 March.

The S&P 500 also rose to the level of 184.28 points i.e. 3.26 percent to 5,844.19, which is the highest after March 3. While the Nasdaq Composite climbed 779.43 points, or 4.35 percent, reached 18,708.34, which is the highest since February 28.

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China reacts to donald trump’s tarifs: US President Donald Trump’s government has imposed a tariff of up to 245 percent on things coming from China. This information is given in a fact sheet issued by the White House. Due to this new tariff, business tension between the US and China has increased further.

China’s reaction has now come to light on this decision of Trump administration. According to the report of Reuters, China said on Thursday that if America continues the game of tariff, it will not pay attention to it.

Trump administration made a big announcement

The Trump administration has announced a new tariff up to 245% on goods coming from China, which has increased tension between the US and China. Regarding this, the White House released a fact sheet, which gave complete information about this decision.

It was told that more than 75 countries have agreed to talk about the new trade agreement with the US. Because of this, not much tariffs have been imposed on these countries at present. At the same time, China has taken retaliation, so the tariff will continue on it. Without giving more information in the fact sheet, it has been said that due to China’s retaliation, it is now facing up to 245% tariffs on goods sent to America.

These allegations made against China

The Fact Sheet of the White House has also alleged that China has stopped exports of Gallium, Germanium, Antimony and other important high-tech materials to the US, which may be used in army related work.

It was also told in the fact sheet that this week, China has also stopped the export of six rare heavy metals and rare earth magnets. The aim of this is that companies of trains around the world, aerospace industry, semiconductor companies and military suppliers should struggle with lack of essential things.

China on us tarifs: The US further increased the tariff from 104 percent to 125 percent over the goods imported from Beijing, increasing the commercial tension with China. In his social media post, President Trump said that he is going to apply a brake on the recipe rocked because many business partners took initiative to negotiate instead of retaliation. But he made serious allegations against China and said that he did not respect.

Beijing took counter action on tariffs and increased the tariff on the goods imported from the US to 84% on Wednesday. This was trying to give a stringent message to Trump. However, after assuming power in January, President Donald Trump has increased tariffs on Chinese goods five times so far.

What can China do?

China has been constantly saying that they will fight till the end. Along with this, business tension between the world’s two economic axis is increasing. It has been said on behalf of China that he has also lodged his protest in front of the World Trade Organization (WTO) against Trump’s move.

Chief Economist Zhiwei Zhang told AFP in Pinpoint Asset Management that China has given a clear indication that they will not turn back. He further said that there is no fast and easy way to solve this fight.

According to Sky News report, export of rare minerals can be controlled by China. These minerals are used for high technology products such as computer chips and electric batteries. A large part of the supply of rare minerals being made in the world is under China’s control. In addition, China can target high profile companies such as agricultural goods and Apple-Teslas that have more impact products. However, according to the report, efforts are being made to attract maximum foreign investment from China.

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Us-china tarif war: Economic conflict between America and China is not a new issue. In the trade war that started from 2018, the two countries put heavy tariffs on each other’s products from time to time. However, this dispute has now reached a new height, when the US increased the tariff on products imported from China to 125%.

The main objective of increasing tariffs against China from the US is to motivate domestic companies to manufacture and reduce dependence on Chinese goods. Trump’s move will affect not only China, but also American consumer, because cheaper goods imported from China will now become expensive. This can increase inflation in the US market.

What does America buy from China?
China is one of the largest exporting countries of America. In the US market, electronics, toys and consumer products are well supplied from China. These include especially electronics items, including smartphones, computers, video games, lithium-ion batteries etc.

Light fixtures, seats, mattresses are exported from China to America in home decor and furniture. Talking about textile, sweaters, clothes and shoes reach the US market in large numbers from China. In other products, China also exports plastic items, motor vehicles parts, party decorations, medical equipment etc. Now the increase in tariffs will increase the price of these items in America.

What does China import from America?
China not only sells goods in the American market but also buys from them. China is the leading buyer of American agriculture product and industrial machinery. The main goods from the US to China include agriculture products, energy resources, industrial machinery, medicine, including scrap copper, esiclic hydrocarbon, ethylene polymer. If China reverses American exports in these areas, then American agriculture and tech companies may suffer a big loss.

Impact on trade
The trade deficit between the US and China in 2024 stood at $ 295.4 billion, which is 5.8% higher than in 2023. At the same time, exports from the US to China declined by 2.9%, while the import of Chinese goods increased by 2.8% in the US. It is clear from this data that China is also getting a shock due to the dispute, but the consumer is also being affected in America. If both countries do not back down, then this trade deficit can increase further, which can pose a threat to global economic instability.

China described America’s tariff as unilateral and just a step taken for its benefit. China’s Foreign Ministry spokesman Lynn Gian said that the US is harming the rest of the countries to meet its interests.

Lin Jian said this

Foreign Ministry spokesman Lynn Gian told AFP, “America wants to hold its grip on the world in the name of mutuality (two -way cooperation). He is only ignoring the rights of the rest of the countries for his benefits and is imposing its rules instead of international rules.” Gian said, “This is a clear example of completely unilateral thinking, selfish policy and economic dominance.”