China hailed a trade agreement with the U.S. that will see both sides sharply reduce their tariffs for 90 days, calling it an "important step" that could lead to "deepening cooperation" between the world's two largest economies.

Progress on US-China trade over the weekend sent stocks soaring on Monday. Some top commentators say tariffs are still a big risk.

A deal with China is a relief to investors who worried 145% tariffs would severely limit trade, raise prices and hurt the US economy.

"That is leading us to put some cash to work," the lead portfolio manager for TheStreet Pro Portfolio said. After two days of negotiations in Switzerland, the U.S. and China agreed to temporarily slash their steep tariffs on each other.

The ascent of the US Treasury Secretary Scott Bessent to lead trade negotiations was the start of the process. Trade hardliner Pete Navarro has been clearly sidelined. It was Bessent who was in Switzerland with Chinese Vice Premier He Lifeng at the weekend.

“It is good that that de-escalation in happening amidst countries. Trade flourishes when value chains are free,” said an official source, adding that India has to improve its competitiveness. He also noted that tariffs are still quite high on China.

China has criticised a trade deal between the United Kingdom and the United States that could be used to squeeze Chinese products out of British supply chains, the Financial Times reported on Tuesday.

The UK government said there was "no such thing as a veto on Chinese investment" in its tariff deal with the US.

Geneva trade breakthrough surprises investors as U.S. and China move quickly to resolve $1.2 trillion deficit.

China criticized the trade agreement reached between the U.S. and the U.K. last week as it could potentially push Chinese products out of British supply chains.

The White House announced a "China trade deal" in a May 11 statement, but did not disclose details. The apparent agreement came together sooner than most observers expected after Trump's 145% tariffs on Chinese imports virtually halted $600 billion in annual trade between the world's two largest economies.