Tesla, Inc. (NASDAQ:TSLA) shares are trading higher Monday after the U.S. and China agreed to a temporary reduction in most tariffs on each other's goods.
What To Know: The trade deal will lower U.S. tariffs on Chinese imports from 145% to 30% and Chinese levies on U.S. goods from 125% to 10% for a three-month period, according to NPR.
Vice Premier He Lifeng led the discussions for China, while Trade Representative Jamieson Greer and Treasury Secretary Scott Bessent represented the U.S. side.
At a press conference, Bessent said the two sides recognized mutual interests, including a shared goal of balanced trade. Greer added that the countries see a "positive path forward" in cooperating to fight fentanyl smuggling.
The current U.S. tariff structure includes a 10% base tariff on all imports, plus an extra 20% implemented earlier this year by President Donald Trump amid concerns over Chinese production of fentanyl-related chemicals.
The U.S. is also reportedly negotiating with China to boost its purchases of American goods.
Tesla stock may be trading higher as a reduction in tariffs could alleviate supply chain uncertainty in the sector. Other auto stocks, including Lucid Group, Inc. (NASDAQ:LCID), are also trading higher following the news.
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TSLA Price Action: At the time of publication, Tesla stock is trading 6.3% higher at $317.00, according to data from Benzinga Pro.
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