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HomeMarket NewsMetals, IT stocks shine after US and China agree to slash tariffs for 90-days
The US and China will temporarily lower tariffs on each other’s products, according to a joint statement released in Geneva.
By Meghna Sen May 12, 2025, 1:12:21 PM IST (Published)
Shares of Indian Metal and IT companies surged in Monday's (May 12) session after the US announced to reduce tariffs on China to 30% from 145% for 90 days.
The Nifty Metal index is the top sectoral gainer today, currently trading with gains of up to 5%. All 15 index constituents are currently trading with gains.
The Nifty IT index is now up 5.40% with all constituents in the green. IT stocks like HCLTech, Persistent Systems, Infosys, Mphasis and peers like Wipro and Tech Mahindra are trading with gains of up to 8%.
The US and China will temporarily lower tariffs on each other’s products, according to a joint statement released in Geneva, in a move to cool trade tensions and give the world’s two largest economies three more months to resolve their differences.
The combined 145% US levies on most Chinese imports will be reduced to 30% including the rate tied to fentanyl by May 14, while the 125% Chinese duties on US goods will drop to 10%, according to the statement.
"We had a very robust and productive discussion on steps forward on fentanyl," Treasury Secretary Scott Bessent said. "We are in agreement that neither side wants to decouple."
The statement also said "the parties will establish a mechanism to continue discussions about economic and trade relations."
The announcement represents a step toward de-escalating a tariff war that has led to an immediate slump in trade across the Pacific Ocean. The two countries had earlier reported “substantial progress” in their talks, which buoyed markets and helped Chinese stocks recoup their losses since President Donald Trump’s “Liberation Day” announcement of tariffs on April 2.
Trade Representive Jamieson Greer said the US wants to have more balanced trade with China.
The Nifty Metal index is now up 4.78% with all constituents in the green. Adani Enterprises, Hindustan Copper, SAIL, NALCO, Hindustan Zinc, and Vedanta are the top gainers on the index currently with gains between 5% to 8%.
