[ZACKS] Stocks soared on Monday after President Trump and President Xi came to a trade truce over the weekend which will benefit both countries.As expected, stocks cheered the deal made at dinner on Saturday where they agreed there would be no new tariffs placed on either country for the next 90 days (that includes freezing the planned tariff increase from 10% to 25% on $200 billion of Chinese goods). In return, China has agreed to purchase a substantial amount of U.S. products, including agricultural goods.
Within those 90 days, both countries will continue their talks to work out the more difficult trade issues that have precluded an agreement prior to this.
If no agreement is reached within that time frame, the U.S. has threatened to raise those 10% tariffs to 25% as originally planned, and has threatened additional tariffs on another $267 billion worth of Chinese goods. China, of course, would retaliate as they have in the past.