The world’s two biggest economies agreed to a 90-day pause on most of their levies after a first round of trade talks in Switzerland over the weekend.

Global markets rose after the US and China slashed tariffs for 90 days in a significant de-escalation of the trade war. The US will cut the additional tariffs imposed on Chinese goods to 30 per cent from 145 per cent while Chinese duties on US imports will fall to 10 per cent from 125 per cent, the two countries announced on Monday.

A deal with China is seen as a relief for investors who worried tariffs as high as 145% would severely limit trade, raise prices and hurt the U.S. economy.