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90-Day Tariff Truce Sparks Market Surge

After weeks of tariff volley, the US and China have agreed to slash reciprocal tariffs for 90 days, sending global equity markets into a broad rally.

Under the deal announced after two days of negotiations in Geneva, US tariffs on Chinese goods will drop from a punitive 145% to 30%, while China will reduce its duties on American imports from 125% to 10%. The 115-percentage-point cuts mark a larger-than-expected de-escalation, though the remaining 30% US rate is still regarded as commercially burdensome.

You can read more on the matter here.

What’s going on?

• ‘Woke’ Ivy League Could See Their Endowments Facing Tax Avalanche (theDeepDive)

• Hamas says it released American-Israeli hostage in goodwill gesture toward Trump administration (Globe)

• “No More Suckers”: Trump Orders Slashing US Drug Prices by Up to 80% (theDeepDive)

• Donald Trump says he could join Russia-Ukraine peace talks in Turkey (FT)

• Spain Requires Reporting on Cash Withdrawals Over €3,000, Fines Up to €150,000 (theDeepDive)

• Fed's Kugler says China-US tariff deal may have lowered risks (Reuters)

• By Single Vote Margin, Liberals Claim Key Quebec Riding (theDeepDive)

• Trump’s eye on Qatar’s $400M luxury jet is already causing a stir (CNBC)

• Florida’s Housing Bubble Deflates as Inventory Hits Record Highs (theDeepDive)

• Ontario unveils plans it says will speed up housing, transit construction (Globe)

• Cabinet Power Grab? Critics Warn of Fallout from BC’s Bill 15 (theDeepDive)

What’s the latest?

• Consumer Confidence: The Bloomberg Nanos Canadian Confidence Index rose to 48.6, its highest in nine weeks, following Prime Minister Mark Carney’s election win, though it still signals overall negative sentiment. Optimism about the economy is up, with 16% expecting improvement (vs. 10% in early April), but 55% still anticipate worsening conditions. The unemployment rate climbed to 6.9% in April from 6.6% in January, largely due to ongoing U.S. trade tariffs. Despite the optimism, 42% of respondents say their finances worsened over the past year, and 14% feel their jobs are not secure.

• Lion Electric: A revised bid to acquire Lion Electric has been submitted after the Quebec government agreed to renew an expired electric school bus subsidy. The previous offer collapsed due to lack of provincial funding. The new proposal may prevent liquidation, which the court-appointed monitor had warned was likely. The offer was officially submitted last Friday.

• Commodities: Oil surged up to 3.9% and copper rose 1.4% after China and the U.S. agreed to lower tariffs for 90 days (China to 10% from 125%, U.S. to 30% from 145%). Mining and energy stocks like Glencore and Rio Tinto jumped over 5%. Soybean and cotton futures also climbed, while gold dropped as haven demand declined due to easing trade and geopolitical tensions..

• Mining:  Pan American Silver is acquiring MAG Silver for approximately US$2.1 billion, offering MAG shareholders $500M in cash and 0.755 Pan American shares per MAG share—a 21% premium. The deal gives Pan American full control of the high-grade Juanicipio mine (which produced 18.6M oz of silver in 2024) and two other projects, while cutting overall costs by 20%. MAG shares rose 7.4% post-announcement; Pan American shares fell 14%.

• Apple: Apple is considering raising iPhone prices for the first time since 2017, potentially linking the hike to new features rather than U.S. tariffs. Despite a recent U.S.-China agreement lowering tariffs to 30% from 145%, Apple expects around $900 million in extra costs this quarter. High-end models will continue production in China, but Apple aims to shift most U.S. iPhone imports to India by late 2026 to reduce tariff exposure.

First Majestic Q1 Earnings

The stock market and stuff

• Apple Testing AI Search Tools for Safari, Executive Tells Antitrust Trial (theDeepDive)

• AI Startup Perplexity Nears Funding at $14 Billion Value (Bloomberg)

• Endeavour Mining Q1 Earnings: Cash Flow Is King (theDeepDive)

• G Mining Oko West Feasibility: Move Fast, Break.. Nothing?(theDeepDive)

In the juniors

• Newmont Sells 50.5 Million Shares In Discovery Silver Despite Claimed One-Year Lock-Up Arrangement (theDeepDive)

• Centerra Gold’s Q1 2025 Marred By Earnings Drop, Free Cash Burn, And Output Decline (theDeepDive)

• MAG Silver To Be Acquired For $2.1 Billion By Pan American Silver (theDeepDive)

FULL DISCLOSURE: Rua Gold is a client of Canacom Group, the parent company of The Deep Dive. The author has been compensated to cover Rua Gold on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.