Global Markets Rally as US and China Extend Tariff Deadline

Donald Trump's decision to extend a truce in the trade war with China for another 90 days sparked a stock market rally across the globe yesterday.

- Lauren Almeida

The US president signed an executive order on Monday night extending the deadline for higher tariffs on China until 10 November and avoiding a rates cliff edge. Beijing responded the following morning that it would suspend additional tariffs on US goods for a further 90 days.

Trump had previously threatened to put tariff rates as high as 245% on Chinese imports into the US after the deadline passed, while Beijing had threatened retaliatory tariffs of 125%.

In response to the reprieve, markets in Japan and Australia hit record highs, as expectations grew that Washington and Beijing could secure a trade agreement during the fresh hiatus. The move extends current baseline rates of 30% on Chinese goods into the US and 10% on American products going the other way.