The world’s two biggest economies agreed to a temporary rollback of most of their recent levies after negotiating 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.

Both sides are hailing the temporary reprieve, which will cut U.S. duties on Chinese goods to 30 percent, but analysts say underlying issues remain.