China Deal Catalyst for Major Market Rally

Reciprocal tariffs dropped from more than 125% to 10%

05/12/2025 - 09:14
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Written by Banking Exchange staff

The Trump administration announced the beginning of a major trade agreement with China after negotiations in Switzerland that surprised Wall Street investors.

The reciprocal tariffs dropped from more than 125% to 10%, that also gave Wall Street a 10% benchmark on tariffs that helped guide optimistic market forecasts.

The Dow futures showed projected opening gains of more than 1,000 points. All major world indexes were up with Germany’s DAX hitting a 2025 high.

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