Tech Stocks Set to Surge as U.S. and China Suspend Reciprocal Tariffs

U.S. technology stocks, along with the broader stock markets, seem ready to begin the day on a positive note following an agreement on Monday between the United States and China to temporarily reduce reciprocal tariffs for 90 days.

As part of the agreement finalized in Geneva, the U.S. will momentarily suspend the 145% reciprocal tariff on Chinese imports, decreasing the rate to 30%. In return, Beijing will pause the 125% tariff on U.S. goods, lowering it to 10%.

Tech stocks experienced a surge before the market opened, with Chinese exporters Temu and Alibaba witnessing nearly a 9% rise in their Nasdaq-listed shares during pre-market trading. Major U.S. tech firms that rely on China for sourcing and manufacturing, including Apple, Amazon, Tesla, Nvidia, AMD, and Meta, all experienced increases of 5% to 6% in pre-market conditions. Nasdaq futures rose by approximately 3.8%.

It’s vital to note that this agreement does not address the recent U.S. elimination of the “de minimis” exemption, which previously exempted duties on imports valued under $800.