Global Markets Surge as US and China Announce Trade Truce

Global stock markets experienced a significant upswing following the announcement of a trade truce between the United States and China. The agreement, revealed early Monday, establishes a 90-day period of negotiation between the world’s two largest economies. This temporary cessation of hostilities aims to de-escalate the tariff war that had previously triggered substantial volatility in financial markets last month.

The terms of the agreement involve a rollback of tariffs on both sides. The U.S., which had dramatically increased tariffs on Chinese imports to 145% last month, will reduce them to 30%. China, in turn, will lower its retaliatory tariffs from 125% to 10%.

"We achieved a total reset with China," President Trump declared in comments made at the White House on Monday morning.

Details of the Trade Truce

White House Press Secretary Karoline Leavitt described the agreement as "an extraordinary step in the right direction" during an appearance on Fox and Friends. A White House press release lauded it as a "historic trade win for the United States."

While the immediate impact of the truce was a surge in stock market activity, the longer-term political implications may prove to be even more significant for President Trump. With midterm elections approaching next year, the president is seeking to advance his agenda through Congress and maintain his party’s majority.

Trade Deal with the United Kingdom

The announcement of the trade truce with China follows closely on the heels of an initial trade agreement with the United Kingdom. This deal marked the first such agreement since President Trump implemented sweeping tariffs the previous month. The president has emphasized that the agreement with London is "the first of many."

Republican strategist Ryan Williams characterized the UK deal as "a positive first step," adding, "It’s a positive first step."

Commerce Secretary Signals Further Deals

Following the US-UK trade agreement, the Commerce Secretary suggested that additional trade deals were on the horizon, stating that they were "going to drive our economy."

President Trump’s Approval Ratings

President Trump’s approval ratings have declined since his return to the White House four months prior. Recent national polls indicate that his approval ratings are currently underwater. This decline represents a reversal from his initial poll position upon entering office in late January.

Several factors contribute to the drop in President Trump’s approval ratings, including increasing concerns among Americans regarding the economy and inflation. These same issues plagued former President Joe Biden, contributing to his low approval ratings throughout much of his presidency.

In the most recent Fox News national poll, conducted between April 18-21, President Trump registered a 44% approval rating and a 55% disapproval rating. A closer examination of the poll data reveals that his approval rating on the economy stands at 38%, while his approval rating on inflation and tariffs is just 33%.

Tariffs and the Trade War

President Trump’s recent announcement of tariffs in early April sparked a trade war with some of the nation’s major trading partners. This action triggered a sell-off in financial markets and heightened fears of a potential recession.

President Trump’s Defense of Tariffs

Shortly after announcing the tariffs, President Trump remarked that "these countries are calling us up, kissing my a–. They are dying to make a deal. ‘Please, please, sir, make a deal. I’ll do anything. I’ll do anything, sir!’"

Now, a month later, President Trump has an opportunity to demonstrate tangible results.

President Trump Touts Economic Progress

President Trump took to social media on Monday morning to proclaim, "NO INFLATION!!! LOVE, DJT."

Later, he alluded to the possibility of a more comprehensive agreement with China, highlighting that "The biggest thing that we’re discussing is the opening up China. And they’ve agreed to do that."

He expressed confidence in China’s commitment to the agreement. "I think they’re going to follow through. I think they want it very badly. I think they want the deal very badly," President Trump asserted.

The Importance of Time and Deal-Making

President Trump has consistently maintained that his agenda requires time for adjustment and deal-making. Republican strategist Williams emphasized that the President will "be given a period of time to execute deals to prove that his plans are working." The initial trade deal with the UK, according to Williams, "is at least a sign that some of the work has been going on behind the scenes thus and is starting to bear fruit."

Williams further stated that the President will "have to back it up with more, but it is a positive first step for him in securing other deals." This deal with the UK provides a foundation for building further trade relationships and solidifying President Trump’s economic strategy.
The developments highlight a complex interplay of economic strategy, political maneuvering, and global market reactions. The coming months will be crucial in determining the long-term impact of these agreements and their effect on the global economic landscape. As the 90-day negotiation period unfolds, the world will be watching closely to see if the truce can evolve into a more permanent and mutually beneficial trade relationship between the United States and China. The President’s poll numbers may also be affected depending on the success of these deals.