U.S. technology stocks and broader market indices appeared poised to rally significantly following news that the United States and China agreed on Monday to a temporary 90-day reduction of reciprocal tariffs.
The agreement, finalized during negotiations in Geneva, involves steep cuts in tariffs on imports between the two economic giants. Under these revised terms, the U.S. will lower its reciprocal tariff rates on Chinese goods from the current level of 145% down to 30%, while China has committed to reducing its tariffs on American imports from 125% to a significantly lower 10%.
The announcement drove sharp pre-market gains for major tech firms heavily dependent on trade between the two countries. Chinese technology companies listed on Nasdaq, such as Temu and Alibaba, surged by nearly 9% in early trading sessions. Similarly, U.S.-based technology leaders with extensive manufacturing and supply chains in China—including Apple, Amazon, Tesla, Nvidia, AMD, and Meta—saw their shares rise between 5% and 6%. Nasdaq futures climbed approximately 3.8% ahead of the trading session, suggesting a strong market open.
Notably absent from the bilateral agreement was any adjustment to the recent U.S. termination of the “de minimis” exemption rule, which previously allowed duty-free importation of goods valued under $800. The status of that policy remains unchanged amid ongoing trade negotiations.
