After months of tit for tat tariff escalations, the US and China have agreed to ease trade tensions on each other’s goods for 90 days, as negotiations continue with aims of lowering tariffs.

BBC reported that US Treasury Secretary Scott Bessent indicated both sides will cut tariffs from Wednesday.

This means that US tariffs on Chinese imports will fall from 145% to 30%, while Chinese tariffs on US goods will fall from 125% to 10%.

The announcement has given a boost to stock markets and both countries have committed to continued trade discussions and negotiations.