Unlocking Value in the Trade Truce: How to Profit from the U.S.-China Tariff Suspension

The 90-day suspension of punitive tariffs between the U.S. and China, announced on April 9, 2025, marks a rare window of opportunity for investors to capitalize on margin expansion and cross-border collaboration. With U.S. tariffs dropping from 145% to 30% and China’s reciprocating from 125% to 10%, industries like technology, manufacturing, and logistics stand to benefit immediately. But this truce is fleeting—expiration looms on July 8, 2025—making swift action critical. Here’s how to position your portfolio for maximum gain while mitigating geopolitical risks.

Tech: The Margin Uplift Play

The tech sector is the clearest beneficiary. Reduced tariffs on semiconductors, components, and software tools will slash input costs for firms reliant on cross-border supply chains. Take Unity Software (U), whose Q4 2024 earnings reveal the potential. Despite a 25% decline in total revenue, its strategic portfolio (focused on core 3D development tools and AI-driven ad tech) surged 4% to $442 million. A

exemplifies how lower tariffs on software and hardware components could amplify this trend.

Unity’s growth was fueled by a 50% leap in its Industry segment, driven by partnerships with multinational firms like Toyota (Japan) and Raytheon (U.S.). These deals underscore the broader theme: reduced trade friction is already enabling global enterprises to adopt advanced digital tools. Investors should target tech firms with China-exposed supply chains or joint ventures, such as semiconductor manufacturers (e.g., Intel,台积电) or cloud infrastructure providers (e.g., Alibaba Cloud, AWS).

Manufacturing: A Cost-Saving Renaissance

Manufacturers face immediate tailwinds. The tariff cuts eliminate a 115% cost drag on Chinese imports of machinery, steel, and consumer goods. Companies like Caterpillar or Boeing, which source parts from China, could see margins expand as input costs normalize. Even small- to mid-cap firms with China-based suppliers (e.g., industrial toolmakers or auto parts specialists) deserve attention.

The suspension also eases pressure on China’s manufacturing hubs, which may resume exporting at pre-tariff rates. This benefits U.S. retailers and distributors, such as Walmart or Home Depot, whose profit margins are squeezed by high-cost alternatives to Chinese goods.

Logistics: The Volume Play

Lower tariffs will spur a surge in cross-border trade volumes, benefiting logistics giants like Maersk, C.H. Robinson, or FedEx. Reduced duties on high-volume goods (e.g., electronics, apparel) could lead to a short-term spike in shipments, boosting revenue and utilization rates. Investors should also watch for winners in rail and port infrastructure, as China-U.S. freight traffic rebounds.

Risk Mitigation: Where to Draw the Line

While the truce is a net positive, not all sectors are safe. Fentanyl-related sanctions remain unresolved, and any escalation could cripple pharmaceutical or chemical companies with China exposure. Avoid overexposure to industries tied to geopolitical flashpoints, such as rare earth mining or defense contractors.

Act Now—Before the Clock Runs Out

The 90-day window is a race against time. Companies will rush to replenish inventories, renegotiate contracts, and finalize joint ventures before July 8. Investors who act now can lock in gains from margin improvements and cost savings.

The Bottom Line: The tariff suspension is a catalyst for sectors like tech, manufacturing, and logistics. Unity Software’s Q4 performance proves cross-border collaboration is thriving—now is the time to invest in firms poised to leverage this truce. But caution is key: focus on companies with diversified supply chains, avoid sanctions-entangled sectors, and remember—this window closes in 77 days.

Invest decisively, but stay agile. The trade truce is a gift—but only for those who act fast.