Mumbai: In a major step toward better trade ties, the United States and China have agreed to reduce tariffs on each other’s goods for 90 days. This news brought cheer to stock markets around the world, including India. The agreement came after talks in Geneva, where both countries agreed to find ways to end the ongoing trade war.
From May 14, the US will lower its tariff rate on Chinese goods from 145 per cent to 30 per cent. This includes items linked to the fentanyl issue. On the other hand, China will cut its tariffs on US products from 125 per cent to 10 per cent.
US Treasury Secretary Scott Bessent said both sides had a “productive” discussion and agreed that neither country wants to “decouple.” They also plan to keep talking to resolve trade issues.
Metal Stocks Shine on Nifty
Indian metal stocks saw a strong rally after the news. The Nifty Metal index is the top-performing sector today. It jumped by about 4.78 per cent, with all 15 companies in the green.
Top gainers in the index include:
– Adani Enterprises
– Hindustan Copper
– SAIL
– NALCO
– Hindustan Zinc
– Vedanta
These stocks rose by 5 per cent to 8 per cent. The news is seen as good for metal exporters, as lower tariffs could mean more business.
IT Stocks Also Rally Strongly
The Nifty IT index also saw a sharp jump of 5.40 per cent. All companies in this sector traded higher. Big gainers include:
– HCLTech
– Persistent Systems
– Infosys
– Mphasis
– Wipro
– Tech Mahindra
These IT stocks rose by up to 8 per cent. The lower tariffs are expected to improve global trade, especially in tech services and products.
A Positive Step for Global Trade
Trade Representative Jamieson Greer said the US aims to make trade with China more balanced. This 90-day truce is seen as a chance to cool down tensions and help both sides find long-term trade solutions.
Markets across Asia responded positively. Experts believe this could boost investor confidence and reduce uncertainty in the coming months.
