Under the new agreement, the US and China have both suspended all but 10% of their Liberation Day tariffs for 90 days and cancelled other retaliatory tariffs. This will cut US tariffs on Chinese imports to 30%, while Chinese tariffs on US imports will be cut to 10%. The pause will begin on 14 May.

Officials may have bought some market patience after delegates from the Trump administration and China on Monday announced plans to cool simmering tensions by simultaneously slashing each other’s tariffs.