May 12 (Monday) Economic News Wall Street's primary indexes were set to open sharply higher on Monday as the United States and China reached a deal to reduce tariffs, signaling a truce in a punishing trade war that had kept markets on edge for weeks. The U.S. will reduce supplementary tariffs it imposed on Chinese imports in April this year to 30% from 145%, and Chinese duties on U.S. imports will decrease to 10% from 125%, the two countries said on Monday. The new measures are effective for 90 days. "The market has to re-calibrate to what things look like before 'Liberation Day' and that looks like a very constructive growing economy," said Thomas Hayes, chairman at Great Hill Capital LLC. The CBOE Volatility Index (.VIX), Wall Street's "fear gauge", briefly slipped below the 20-point threshold for the first time since late March - levels last seen before U.S. President Donald Trump announced reciprocal tariffs against most trading partners on April 2, which he dubbed Liberation Day. #rtyrwarriors