The announcement that the US and China have agreed to slash tariffs on each other has been labelled a ‘reverse liberation day’ by one expert.
On Monday, it was confirmed that US tariffs on Chinese imports will fall from 145% to 30%, while Chinese tariffs on US goods will fall from 125% to 10% for the next 90 days.
The news is a major de-escalation of the trade war between the two nations, which was kicked off last month when Donald Trump revealed his wide-scale ‘liberation day’ tariffs.
Following Monday’s announcement, global stock markets rose, with the S&P 500 jumping almost 3% and the Nasdaq climbing by nearly 4%.
As a result, one expert has dubbed it a ‘reverse version of liberation day,’ when Trump’s tariffs prompted global stocks to plummet.
Ahmad Assiri, Research Strategist at Pepperstone, said: “These measures, though temporary and set to take effect within two days, were met with an immediate and strong reaction in markets.
“Economically, this step back in tariffs is not a structural fix or a comprehensive deal. But it signals a change in tone or at the very least a political willingness to pause. Under the surface, this move seems more like an effort to buy time. It may help pave the way for more serious talks over the coming three months. Markets read this as a sign that progress is possible. Not guaranteed, and not permanent, but at least it’s a step forward.
He continued: “This shift creates room to reassess global trade flows and input costs, and it may offer support to corporate earnings in the next quarter. Even if temporary, this truce could give growth a nudge. What happened today isn’t the end of the trade tensions, but it’s clearly a tactical pause. It’s the kind of day that feels like a reverse version of liberation day. Not a full removal of barriers, but a softening of them. Still, it was enough to let markets breathe and offer participants a moment of cautious hope, even if only for now.”
Reacting to the news of the tariff slashing on X, California congressman Eric Swalwell said Trump had ‘caved on China.’
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