Asian stock markets rallied on Monday following a joint announcement by the Chinese mainland and the United States about a temporary easing of tariffs and the launch of a new mechanism for economic and trade dialogue.
Hong Kong stocks led the surge, with the Hang Seng Index soaring 2.98 percent. The rally reflected renewed investor confidence in the Chinese economy and relief over the cooling of tensions with the US. The Shanghai Composite Index rose 0.82 percent, Japan’s Nikkei 225 climbed 0.38 percent, and South Korea’s KOSPI advanced 1.17 percent.
The decision came after a two-day high-level meeting on economic and trade affairs, where both sides recognized the importance of their bilateral economic and trade relationship to themselves and the global economy. Both emphasized the need for a sustainable, long-term, and mutually beneficial economic and trade relationship.
According to the statement, the United States will place a 90-day pause on 24 percentage points of reciprocal tariffs imposed on imports from the Chinese mainland (including articles from the Hong Kong Special Administrative Region and the Macao Special Administrative Region) on April 2, while retaining the remaining rate of 10 percent on those articles. It will also remove the additional tariff rates on imports from the Chinese mainland announced on April 8 and 9 respectively.
The Chinese mainland will modify accordingly the application of tariffs on articles of the United States implemented in the Announcement of the Customs Tariff Commission of the State Council No. 4 of 2025, by suspending 24 percentage points of that rate for an initial period of 90 days while retaining the remaining rate of 10 percent on those articles. The Chinese mainland will also adopt all necessary administrative measures to suspend or remove the non-tariff countermeasures taken against the United States since April 2, 2025.
The two sides committed to take the actions by May 14. They will also establish a mechanism to continue discussions about economic and trade relations, which may be conducted alternately in the Chinese mainland and the United States, or a third country upon agreement of the parties.
The Ministry of Commerce of the Chinese mainland stated that the measures align with the interests of producers and consumers in both countries, as well as with global economic stability. The ministry called on the United States to continue working with the Chinese mainland in a spirit of mutual respect and benefit, to fully correct unilateral tariff practices, and to inject more certainty and stability into the world economy.
