Markets Surge as Treasury Secretary Bessent Announces U.S.-China Trade Deal

Edited by: TJVNews.com

U.S. stock futures surged Sunday evening following a major announcement from Treasury Secretary Scott Bessent, who confirmed that “substantial progress” was made during weekend trade negotiations between U.S. and Chinese officials in Geneva, Switzerland. The upbeat assessment marks a potential turning point in the ongoing trade conflict that has rattled global markets since President Donald Trump enacted sweeping new tariffs on Chinese goods last month.

BREAKING: The US says a trade deal with China has been reached and the Trump Administration “will be giving details tomorrow.” pic.twitter.com/VqJsWkY1M0

— The Kobeissi Letter (@KobeissiLetter) May 11, 2025

According to a report on CNN, markets reacted swiftly and positively to Bessent’s remarks. As of 7:45 p.m. ET, Dow Jones Industrial Average futures rose 1.03% (427.66 points), the S&P 500 futures climbed 1.31% (75.8 points), and Nasdaq Composite futures jumped 1.71% (348.19 points)—signaling renewed investor confidence in the possibility of a trade truce between the world’s two largest economies.

The Geneva meetings were led by Bessent and U.S. Trade Representative Jamieson Greer, both of whom met with senior Chinese officials in an effort to defuse mounting trade tensions. As CNN reported, the talks come on the heels of President Trump’s decision to implement 145% tariffs on nearly all Chinese imports in April—a dramatic escalation that prompted China to retaliate with 125% tariffs on U.S. goods.

For weeks, these tit-for-tat tariff announcements triggered volatility in the financial markets, with concerns over inflation, supply chain disruptions, and plummeting consumer confidence. Sunday’s positive developments signal that both sides may be inching closer to a more sustainable trade framework, which is expected to be officially outlined Monday morning, according to CNN.

“Markets have been whipsawed by uncertainty, but this weekend’s announcement provides a much-needed dose of optimism,” one analyst told CNN, adding that even a partial agreement would be “a step in the right direction” for both economies.

Commerce Secretary Howard Lutnick, speaking on CNN’s “State of the Union” Sunday, confirmed that while tariffs will not be rolled back entirely, they will likely be significantly reduced from the extreme levels imposed in April.

“We’re not willing to set tariff rates lower than 10% in negotiations,” Lutnick told CNN, noting that the recent U.S.-U.K. trade deal also maintained a baseline 10% tariff. “That 10% rate is going to stay in place for the foreseeable future,” he said.

This policy signals a shift away from the “maximum pressure” strategy adopted earlier this year and toward a more balanced approach that seeks to maintain economic leverage without shocking the supply chain.

While Sunday’s announcements have buoyed markets, the economic damage from weeks of trade turbulence remains significant. As CNN previously reported, consumer confidence has plummeted, and the U.S. economy experienced its first quarterly GDP contraction since early 2022.

Moreover, Goldman Sachs analysts warned last week that a key measure of core inflation could double to 4% by year’s end, driven largely by the increased cost of imported goods affected by Trump’s tariff policy.

The impact is already being felt at America’s ports. Gene Seroka, Executive Director of the Port of Los Angeles, told CNN that imports from China have dropped by more than 50% since the new tariffs went into effect. Ships currently arriving in U.S. harbors are the first carrying cargo taxed at the new 145% rate, raising concerns about price spikes and empty retail shelves in the coming weeks.

“We’re entering a phase where the consumer will start to feel the consequences at checkout,” Seroka told CNN in a recent interview. “Retailers are bracing for delayed shipments, increased costs, and limited inventory.”

Sunday’s developments also follow Trump’s recent trade deal with the United Kingdom, part of a broader effort by the administration to reframe America’s global trade partnerships around reciprocal tariffs and bilateral agreements. While critics have accused the administration of destabilizing long-standing trade norms, supporters argue that the U.S. is finally asserting itself against economic exploitation.

Still, the CNN report noted that Trump’s erratic tariff announcements—at times issuing contradictory statements within days—have made it difficult for markets, allies, and even U.S. businesses to plan effectively. The proposed U.S.-China deal will serve as a key litmus test for whether the administration’s high-risk, high-reward trade approach can yield tangible economic benefits.

While markets remain cautiously optimistic, analysts speaking with CNN emphasized that much depends on the final details of the U.S.-China framework, which is expected to be unveiled on Monday. Investors will be watching closely for commitments on intellectual property protections, market access, and tariff reduction timelines.

“This is not a peace treaty,” one senior economist told CNN. “It’s a potential armistice that gives both sides time to breathe—but the underlying tensions remain.”

As the dust settles on the Geneva negotiations, one thing is clear: the markets are hungry for clarity, and even partial resolution of the trade war is better than continued uncertainty. Whether President Trump’s strategy has truly shifted the trade paradigm—or merely postponed another clash—remains to be seen.