President Trump was celebrating V-C (Victory over China) Day on Monday, May 12, as the People’s Republic of China (PRC) and the United States issued a joint resolution to cut tariffs by 115 percent. Both China and the U.S. had set tariffs at 125 percent following Trump’s “Liberation Day” on April 2.
Those tariffs are now 10 percent for the next 90 days, though the PRC also faces a tariff surcharge of 20 percent because of its fentanyl policy. Cars, car parts, aluminum and steel remain at 25-percent rates.
As a result of the announcement, the New York Stock Exchange (NYSE) and the NASDAQ both witnessed opening bells with gains of more than 1,000 points on the NYSE and 700 points on the NASDAQ.
Meanwhile, Hamas has released the lone remaining American-Israeli hostage, Edan Alexander, as Trump jets off to the Middle East with stops just about everywhere except Israel (and Iran, of course).
In Europe, a call for a 30-day ceasefire in Ukraine by European leaders and Trump went ignored by Russia’s Putin, though Ukraine President Zelenskyy is planning to be in Turkey on Thursday to meet with Putin, who indicates he may attend as well.
Trump appears to be winning his trade war, securing deals with both Great Brtain and China, though China’s still needs to be fleshed out. In Ukraine, he still faces a Russian leader whose expansion ambitions remain a huge hurdle to peace. In the Middle East, the Israeli conflict with Hamas also seems to be raging unabated.
At least those of us with 401(k)s and IRAs can celebrate.