Intel Corporation ( INTC ) shares are trading higher Monday after the U.S. and China agreed to a temporary reduction in most tariffs on each other’s goods.

What To Know: According to NPR, the deal will drop U.S. tariffs on Chinese goods from 145% to 30% and Chinese duties on U.S. imports from 125% to 10% for a three-month period.

On the U.S. side, the talks were led by Trade Representative Jamieson Greer and Treasury Secretary Scott Bessent, while Vice Premier He Lifeng led the discussions for China.

Bessent said at a press conference that, “We concluded that we have shared interests, and we both have an interest in balanced trade.” In addition, Greer stated that there is a “positive path forward” on the two countries working to combat fentanyl smuggling.

The updated U.S. tariff levels include a base 10% tariff on all imports, along with an additional 20% tariff introduced earlier this year by President Donald Trump in response to allegations that China is producing chemicals linked to fentanyl.

The U.S. is reportedly now in talks with China to increase its purchases of American goods.

Intel ( INTC ) stock may be trading higher as a reduction in tariffs could alleviate some supply chain concerns and improve macro sentiment as well as demand visibility. Other chip stocks, including Advanced Micro Devices, Inc. ( AMD ) , are also trading higher following the news.

Notably, sales from China accounted for about 30% of Intel’s revenue in 2024.

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INTC Price Action: At the time of writing, Intel ( INTC ) shares are trading 3.91% higher at $22.25, according to data from Benzinga Pro.

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