US and China agree to drastically roll back tariffs in major trade breakthrough

The United States and China agreed Monday (12) to drastically roll back tariffs on each other's goods for an initial 90-day period, in a surprise breakthrough that has de-escalated a punishing trade war and buoyed global markets.

- Hong Kong CNN-

The announcement, which was made in a joint statement, comes after a week-end of marathon trade negotiations in Geneva, Switzerland by officials from the world’s two largest economies, during which both sides touted “substantial progress.”

Both sides recognize “the importance of a sustainable, long-term, and mutually beneficial economic and trade relationship,” they said in the statement.

Global investors are cheering a thaw in the trade war sparked by US President Donald Trump's massive tariffs, which have roiled financial markets, disrupted supply chains and stoked recession fears.

Dow futures jumped more than 2%, while S&P 500 futures rose nearly 3%. and the tech-heavy Nasdaq Composite futures went up more than 3.5% during Asian afternoon trading. Asian markets were higher too, with Hong Kong’s Hang Seng index gaining more than 3%.