China just “tapped out”.

When the Trump administration launched its trade war on 4/2/25, the media teemed with analysis that this approach was a colossal mistake, that China, not the U.S. was in a position of strength, and that ultimately the tariffs would backfire and wreck the U.S. economy.

All of this proved to be wrong.

It is China’s economy, not the U.S.’s, that is on the verge of collapse. Factory closures are happening daily, igniting protests around the country. Youth unemployment is skyrocketing. And the entire economy is on the verge of a deflationary death spiral as it is forced to dump goods into its domestic markets to sell them for whatever price it can get.

As a result of this, the People’s Republic has “come to the table” with some major gestures of good will in the last week. 

Specifically, China has:

1. Removed tariffs on nearly 25% of U.S. imports to the country.
2. Offered to help the U.S. with the latter’s fentanyl crisis.
3. Formally stated that it would like to meet to negotiate a trade deal.

The last one (#3) just hit the news wires last night after the market closed. It’s not a rumor either, it was posted by China’s Commerce Ministry.

We get confirmation of this from the U.S.’s Treasury Secretary Scott Bessent who stated that he would be meeting with China’s Vice Premiere in Switzerland in the coming days.

Stock futures surged on the news.

So, what does this mean for stocks and investors?

THE lows are in.

I don’t mean that stocks will go straight up from here. The typical trade deal can take months if not years to finalize. But stocks discount the future and the future regarding trade relations between China and the U.S. is improving. Things are certainly better today than they were a month ago!

This is a good thing.

And while the markets as a whole should work their way higher, certain stocks are poised for truly EXTRAORDINARY gains based on this unique environment. We detail three of them it in a Special Investment Report titled How to Profit a Inflation.

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