The United States and China have agreed to drastically roll back tariffs on each other's goods for an initial 90 days, de-escalating a punishing trade war and buoying global markets.
By May 14, the US will temporarily lower its overall tariffs on Chinese goods from 145% to 30%, while China will cut its levies on American imports from 125% to 10%.
The dollar rose and stock markets lifted following the news, which helped allay concerns about a downturn triggered last month by U.S. President Donald Trump's escalation of tariff measures aimed at narrowing the US trade deficit.
The tariff dispute had brought nearly US$600 billion in two-way trade to a standstill, disrupting supply chains, sparking fears of stagflation and triggering some layoffs.
The announcement, which was made in a joint statement, came after a weekend of marathon trade negotiations in Geneva, Switzerland and were the first face-to-face interactions between senior US and Chinese economic officials since Trump returned to power.
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