S&P 500 futures jump nearly 1% as US set to rollback China tariffs to fight inflation

Bloomberg reported early Tuesday, citing unidentified people familiar with the deliberations, President Joe Biden is set to roll back some US tariffs on Chinese consumer goods as soon as this week.

Key takeaways

The Biden Administration will also conduct a new probe into industrial subsidies that could lead to more duties in strategic areas like technology.

The president in recent weeks held a number of meetings with senior economic advisers where options for a decision on the Trump-era tariffs were discussed.

Meanwhile, the Wall Street Journal (WSJ) previously reported a decision could come as soon as this week. 

Market reaction

Risk sentiment remains underpinned by hopes of an imminent withdrawal of US tariffs on Chinese goods, as political pressure in America heightens amid raging inflation.

Commodities and high-beta currencies cheered the US-Sino trade optimism, with AUD/USD advancing 0.35% on the day to 0.6890 ahead of the critical RBA rate hike decision.

S&P 500 futures is up 0.90% so far at 3,845 while the Asian stocks trade firmer, led by the 1% rally in the Japanese Nikkei 225 index.