Economist believes US-China tariff truce could be the start of a financial revolution
Former Trump advisor Stephen Moore said the market rebound that came as China and the U.S. agreed to a 90-day pause on massive tariffs could signal the start of a financial revolution.
Stocks soared Monday amid news of a 90-day pause on U.S.-China tariffs, and former Trump economic advisor Stephen Moore believes it could be the start of a financial revolution.
"I'm not a big tariff guy. I'm much more in favor of free trade and lower tariffs," Moore said Monday on "Varney & Co."
However, if Trump can "pull off" his effort to strike trade deals that benefit the U.S., Moore sees justification for the method.
"It looks right now like he's succeeding," he added, pointing to stocks.
Since the dawn of his second term, Trump has imposed various tariffs on trade partners in an effort to bring these partners to the negotiating table.
WHAT'S IN THE TRADE TRUCE WITH CHINA
China, which became targeted by Trump's most burdensome tariffs, reached a truce with the U.S. in an agreement announced Monday, signaling a 90-day cooling-off period that signals a temporary end to the longstanding trade war between the two superpowers.
U.S. tariffs on Chinese imports, which were jacked up to 145% last month as President Trump hiked tariffs on countries around the world, will be scaled down to 30%, with Beijing lowering its tariffs from a retaliatory 125% to just 10%.
The deal came after a blockbuster agreement with the U.K. last week, something Moore emphasized before pivoting back to China.
"It looks like it's a dramatic reduction in tariffs on both sides of the Pacific with respect to the U.S. reducing our tariffs and China [reducing] theirs. If you get this domino effect, then you're going to see a lot more green on that screen over the next few weeks," he said, with the caveat that there are still many "choppy waters" to wade through.
"[The devil is in] the details of how these negotiations are going to proceed. But my God, what's the Dow up now, 3,000 points from its low point? By the way, this is pretty close to a high point, isn't it, on the Dow? We're pretty close to it."
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The Dow rose with a thousand-point gain. The Nasdaq made a three-and-a-quarter percent gain, and the S&P 500 rose two and a half percent in light of the deal, all marking a strong start for Monday morning.
Fox News Digital's Paul Steinauser contributed to this report.
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