President Donald Trump claimed two trade wins within days. On Sunday, officials reported that negotiations between senior U.S. and Chinese officials had ended with an agreement to reduce tariffs for 90 days.

The move will lower tariffs on Chinese exports to 10% from the previous 145%. It followed Trump’s announcement in the Oval Office on Friday of a “conclusive” trade deal with the U.K.

Markets welcomed the update on China. Hopes of avoiding a trade war pushed Dow Jones Industrial Average futures nearly 1,000 points higher in premarket trading.

Treasury Secretary Scott Bessent spoke at a press conference in Geneva on Monday. He said, “We have reached an agreement on a 90-day pause and (to) substantially move down the tariff levels.” He added, “Both sides on the reciprocal tariffs will move their tariffs down 115%.”

Sam Bullard, senior economist and managing director at Wells Fargo’s corporate and investment banking unit, wrote late Sunday that “the commitment to continue negotiations signals a mutual interest in de-escalating tensions and could pave the way for a more stable and prosperous U.S. and global economy.”

Trump will depart later this week on a four-day trip to Saudi Arabia, Qatar, and the United Arab Emirates. These countries are major oil producers and have also been involved in business deals with the president, his daughter Ivanka, and his son-in-law Jared Kushner.

The trip may overshadow a major inflation report scheduled for Tuesday. The consumer price index for April is expected to show a monthly rise but little change in the annual rate.

Officials will release the producer price index for April on Thursday. Economists expect a monthly increase and a dip in the annual rate. Inflation is still lower than it was in mid-2022, but it remains above the Federal Reserve’s 2% annual target. That continues to trouble many American consumers.

The Federal Reserve closely watches the core producer price index, which excludes food and energy costs because they are often volatile.

Last week, the Fed held interest rates steady. After the meeting, Fed Chair Jerome Powell made it clear the central bank was not yet ready to lower rates.

“I’m confident that we’re well-positioned, in the sense that we’re well-positioned to move in the direction we’ll need to move,” Powell said after the Fed’s announcement. “I mean, the point is we are – we are at – you know, we’re at a place where we can cut or we can hold what is clearly a restrictive stance of policy.”

He added, “Forecasting right now, it’s – you know, forecasting is always very, very hard. And in the current situation, I just think it’s – uncertainty is remarkably high.”

Right now, Trump is the most prominent player in economic policy due to his shifting tariff strategy. On April 2, he stunned the world by announcing sweeping tariffs on more than 70 countries, only to postpone them soon after a massive Wall Street sell-off.

He pledged to negotiate separately with key trading partners. Analysts will now scrutinise the U.K. and China agreements to predict how Trump might strike deals with other nations.

Since then, businesses and consumers have shifted their behaviour. Many delayed spending, cut back on hiring, or made large purchases ahead of the tariffs.

A sharp increase in imports during the first quarter caused the economy to shrink by 0.3%. Economists may revise that figure upward with more data, but the uncertainty continues to weigh on forecasts.

On Friday, the University of Michigan will release its preliminary consumer sentiment report for May. The report is expected to show slight improvement from April, but public sentiment remains low due to Trump’s tariff moves and persistent inflation concerns.