In a surprising turn of events, President Trump announced yesterday that he plans to substantially reduce tariffs on China, sparking a positive response from stock markets. This decision comes after a call with Chinese President Xi Jinping, as reported by Fox News.

The news of Trump's tariff reduction on China comes after months of escalating trade tensions between the two countries, with the US imposing tariffs on billions of dollars' worth of Chinese goods. This move is expected to ease the strain on the global economy and boost investor confidence.

Stock markets around the world responded positively to Trump's announcement, with many indices experiencing significant gains. The S&P 500 and Dow Jones Industrial Average both saw an uptick in value, signaling a renewed sense of optimism among investors.

While details of the tariff reduction plan are still unclear, Trump's statement has been met with cautious optimism from experts and economists. The reduction in tariffs on China is seen as a step towards de-escalating the trade war and reaching a mutually beneficial agreement between the two economic giants.