Stocks Soar on US-China Trade Deal: A Temporary Relief for Consumers?

**US-China Trade Deal Sends Stocks Soaring, but Consumer Relief Remains Limited** Wall Street experienced a significant surge on Monday, May 12, 2025, as the Dow Jones, S&P 500, and Nasdaq Composite reached their highest points in over a month. This positive market reaction followed the announcement of a 90-day agreement between the US and China to reduce tariffs. The White House's decision to lower tariffs on Chinese goods from 145% to 30% was the catalyst for the rally. "Stocks are soaring," reported Rebecca Jarvis, ABC News Chief Business, Technology & Economics Correspondent, "with the Dow, S&P 500, and Nasdaq posting their best day in over a month." The Dow Jones Industrial Average surged over 1,100 points, a 2.81% increase, while the S&P 500 and Nasdaq saw gains of 3.26% and 4.35%, respectively. While the stock market celebrated, the video also highlighted that the tariff reduction will only partially alleviate the financial burden on American consumers. Previously, tariffs were estimated to cost households an additional $4,900 annually, a figure now reduced to $2,800. The video showcased the contrast between the jubilation on Wall Street and the ongoing financial challenges faced by many American families. The report also noted that U.S. customs duties in April 2025 totaled $16.3 billion, more than double the amount collected in April 2024, likely due to tariffs on steel and aluminum from Mexico and Canada. These costs are ultimately passed on to businesses and consumers. Despite the temporary relief, the focus now shifts to inflation and the ongoing impact on prices. The video concludes with a note of uncertainty, as the long-term effects of the US-China trade deal remain to be seen.