Trade Truce

Washington and Beijing have agreed to 90 days of trade kumbaya.

Under the deal, the U.S. and China have agreed to mutually lower reciprocal tariffs from 125% to 10%, though the U.S. will maintain an additional 20% tariff on Chinese goods (so, 30% total) meant to pressure Beijing on the flow of fentanyl into the States. China has also agreed to relax some nontariff trade barriers, such as easing the permitting process for American companies to mine rare earth minerals.

The S&P 500 took a gulp of fresh air after the announcement, jumping 3.2% on Monday.

Meanwhile, the stock market was less reactive to news that annual inflation dropped to 2.3% in April—its lowest rate since February 2021. Notably, egg prices fell 12.7% last month but are still up a budget-scrambling 50% from a year ago.

ETERNAL PERSPECTIVE
Our hope is never contingent on an economic outcome; it’s much more secure than that. Regardless of whether things get worse or better during your lifetime, everything eventually ends well for followers of Christ.

“The Lord is my rock, my fortress, and my deliverer, my God, my rock where I seek refuge, my shield and the horn of my salvation, my stronghold.”
Psalm 18:2 (CSB) (read full passage)