The week kicked off on a strong note following a significant breakthrough in U.S.-China trade relations. Both countries agreed to sharply reduce tariffs on each other’s goods for a 90-day trial period, fueling optimism across global equity markets.

Under the deal, the U.S. will cut tariffs on Chinese imports from 145% to 30%, while China will reduce tariffs on U.S. goods from 125% to 10%. The move aims to ease ongoing trade tensions and is expected to boost cross-border commerce, lower input costs, and alleviate supply chain pressures across key industries.

This development has already sparked positive reactions in the market, particularly within the shipping, semiconductors, and logistics sectors.

Here's a breakdown of the stocks most likely to benefit from these tariff reductions and their movement in the premarket session on Monday:

Shipping & Logistics

These companies are direct beneficiaries of increased trade volumes and smoother cross-border movement. The tariff reduction could facilitate faster and more cost-efficient shipping, boosting profits for global logistics firms.

Semiconductors

Relief from tariffs could ease supply chain disruptions and cut costs for chipmakers. Specifically, tariff relief on China-related components may help ease production bottlenecks, leading to improved production capacity and lower costs.

Retailers

Lower import costs could boost gross margins and improve pricing power for major retailers relying on Chinese goods, making them well-positioned to benefit from the tariff reductions.

Automotive & Parts

Automakers stand to gain from lower input costs on metals and electronics. Tariff cuts on metals and electronics could reduce manufacturing costs, leading to improved profitability for major auto manufacturers.

Industrial Equipment

Tariff relief on machinery parts could improve margins and output potential for companies that rely on imported components for industrial equipment manufacturing.

Consumer Electronics

Supply chain savings could fuel better profitability, especially for companies with China-centric supply chains, such as Apple.

Airlines

Tariff reductions could lower operating expenses, including aircraft components and maintenance materials. In addition, stronger global trade may increase demand for air freight.

U.S.-listed Chinese tech giants

These companies are directly impacted by trade relations between the two countries, and tariff reductions can ease pressures on their supply chains and market access.