On Monday, the U.S. and China agreed to a temporary reduction in most tariffs on each other’s goods, marking a considerable easing of trade tensions. As a result, major tech stocks caught in the trade war, such as Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN) and Nvidia Corp (NASDAQ:NVDA), climbed more than 4% during the pre-market trading session.
What Happened: The world’s two largest economies have agreed to a 90-day suspension of “reciprocal” tariffs, reducing them from 125% to 10%. However, the U.S. will maintain its 20% tariffs on Chinese imports linked to fentanyl, keeping the overall tariff level on China at 30%, reported CNBC.
As per the joint statement, Beijing has also agreed to suspend or lift all non-tariff countermeasures imposed since April 2, including sanctions on certain U.S. companies and export restrictions on key minerals, as per the South China Morning Post.
This development comes after intensive trade talks between U.S. and Chinese representatives in …