Yahoo Finance

Stocks climbing, as Julie's pointed out, as the US and China agree to reduce tariffs for the next 90 days, President Trump highlighting the reduction in a press conference earlier today.

We achieved a total reset with China after productive talks in Geneva. Both sides now agreed to reduce the tariffs imposed after April 2nd to 10% for 90 days as negotiators continue in the larger structural issues.

Well, here to help us break down the details now is Yahoo Finance Washington correspondent, Ben Werschkul. Ben.

Hey guys, yeah, so quite a quite a series of rapid fire developments today after this early morning announcement of this 90 day pause from 145% tariffs on the US side and 125% on the Chinese side. Um, one one through line today, I think is we're kind of getting a sense of the key next steps to come, um, as we're as we're digesting this deal. The first one you alluded to at the beginning, which is a Trump meeting with President Xi Jinping. He said that could happen as early as this week. Um, that would be a major moment in terms of kind of finalizing a lot of the underlying issues here that are that are kind of a bit being glossed over by this by this by this this, um, tariff reduction, but are really complicated and they have to figure out at least the next steps on to sort of see momentum continue here. The next is more meetings between Treasury Secretary Scott Best and his team and the Chinese. Uh, Best said today, he expects those in the coming weeks. So that could follow quickly. There's a clear desire here on the part of the White House at least to to keep momentum going here. And then the third one that I think people maybe aren't recognizing enough is the other tariffs that Trump has in the offing that could complicate this story. I think Trump, it was important that Trump made a note today that this deal does not include pharmaceutical tariffs, which he said that he alluded to the fact that they are coming, that he's he's promised that pharmaceutical tariffs and semiconductor tariffs will be announced in the coming weeks. There's investigations ongoing on those fronts. So those are coming and those are going to be big moments in terms of of kind of what this overall tariff picture as we kind of have another 90-day clock ahead of us between the US and China.

And of course, he also signed a separate executive order having to do with drug prices. We're going to talk more about that a little bit later in the show. But there's another question I have for you about the China tariffs, which is, recently, we had the removal of the so-called de minimis exemption, right? That goods worth $800 or less that were being imported into the US had been exempt for a long time from tariffs until, what was it, a week ago Friday or whatever it was. So, um, so, does this affect that at all? Do we know?

It does not appear to affect that. This is a good example. I think of uh, if you're in this sector, you're you're better, you're definitely better than you were yesterday, but you're worse than you were on January 2nd. January 2nd. So the the de minimis exception was revoked. It was on May 2nd. This this allows these these goods under $800 to to have duties on them. They will get a decline in their tariffs because of this deal. If it if it's coming from China. So the 145 to 30% is a is a big break for for these companies. These are Chinese firms that that would import things, um, import things directly. But, as I mentioned, that there's no clarity. There's there was no, um, mention of the de minimis exception in the in the joint statement and and the leaders didn't bring this up. So the de minimis exception appears to still be revoked. So you're kind of better than you were, better than you were a few days ago, but you still are paying duties, um, to the government.