Markets soar: US, China cut tariffs, Dow Jones rises 1,200 points

stock market

On Monday, May 12, 2025, U.S. stock markets posted significant gains after the announcement of a temporary reduction in U.S.-China trade tariffs. The Dow Jones Industrial Average rose 2.8%, or nearly 1,200 points, for its sixth consecutive day of gains, TulparTech magazine reported.

The 90-day trade break agreement reached in Geneva has sparked optimism among investors, but experts warn of continuing uncertainty.

Tariff Reduction: Agreement Details

The White House has announced a reduction in tariffs on “de minimis” packages from China worth up to $800 from 120% to 54%, while maintaining a flat fee of $100, effective May 14 Yahoo Finance . This mitigates the impact of closing a loophole that allowed goods up to $800 to be imported duty-free. The decision supports Chinese e-commerce platforms such as Shein and Temu, which have struggled under high tariffs The Guardian .

In response, China lifted its ban on Boeing jets, paving the way for contracts with Chinese airlines to resume Bloomberg . Boeing shares rose 4% on the news, adding momentum to the market rally

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Market and business reaction

Markets responded with strong gains, with the Nasdaq and S&P 500 up 1.4-1.8% and Dow Jones futures pointing to gains of more than 1,000 points ahead of the AllSides open . Goldman Sachs raised its stock forecasts, citing the Buy American initiative, but analysts such as Ipek Ozkardeskaya of Swissquote Bank say the 90-day pause leaves questions about the future of The Guardian .

Critics point out that the agreement does not address structural problems such as the U.S. trade deficit or the fentanyl crisis. Tariffs related to fentanyl (20%) remain unchanged, reflecting ongoing tensions CNBC . Even so, the temporary tariff reduction gives businesses breathing room to adjust.

Central Asia: Trade Prospects

For the Central Asian countries of Kazakhstan, Uzbekistan, Kyrgyzstan, Tajikistan and Turkmenistan, lowering tariffs could strengthen trade ties with China, a key economic partner in the region. Chinese goods, including electronics and electric vehicles, are already in demand in the region, and easing trade barriers could speed up their imports CleanTechnica . For example, Kazakhstan is actively developing the electric vehicle market, and Uzbekistan is attracting Chinese investment in green technologies Reuters .

TulparTech magazine notes that it is important for countries in the region to avoid trade imbalances. Investments in logistics, charging infrastructure, and local manufacturing can balance imports and strengthen economic resilience. The development of energy management technologies and data analytics will be key to supporting the growing electric vehicle market in Central Asia.

Global Context: Markets and Expectations

Global markets welcomed the trade pause, but analysts stressed the temporary nature of the agreement. European indices such as the FTSE 100 rose 0.8%, reflecting the positive sentiment, Bloomberg reported . However, without a long-term agreement, tensions between the US and China could return, posing risks for investors Reuters . For Central Asia, it highlights the need for a strategic approach to trade and investment.

The Future of Markets and the Region

The 90-day trading pause has sparked a market rally, but its temporary nature is curbing long-term optimism. Central Asian countries can use this window of opportunity to attract investment in green technologies and logistics, but success depends on developing local infrastructure. Stay up-to-date with global market and Central Asian economic trends on TulparTech.