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The US and China have agreed to put most tariffs on pause for 90 days , marking a major deescalation in a trade tit-for-tat that has roiled global markets.

Treasury Secretary Scott Bessent, who led weekend trade talks for the US delegation, said both sides have pledged to slash tariffs. US tariffs on most Chinese imports will be cut to 30% from the current 145%, while China's tariffs will drop to 10% from the current 125%, according to a joint statement.

"The consensus from both delegations this weekend is neither side wants a decoupling," Bessent said on Monday . "And what had occurred with these very high tariffs ... was the equivalent of an embargo, and neither side wants that. We do want trade."

The US said the tariff reductions would be in effect for 90 days while talks proceed. President Trump said Monday that he plans to speak with Chinese President Xi Jinping soon, "maybe at the end of the week."

US equity markets cheered the news as the scope of the tariff reductions surprised Wall Street. Shares of megacap tech companies that had been punished by the trade war — including Amazon ( AMZN ), Apple ( AAPL ), and Tesla ( TSLA ) — soared.

Optimism for a comprehensive shift in US policy grew last week as Trump announced a trade deal with the UK, the first for his administration since imposing — then pausing — sweeping "reciprocal" tariffs against all trading partners in early April.

Trump said the "breakthrough" US-UK trade agreement would boost US export markets for agricultural products, including beef and ethanol.

Meanwhile, US negotiations with the UK's neighbors in the EU have taken a different tone, with the EU on Thursday unveiling a list of US products it will target with tariffs in the event trade negotiations fail.

On the economic front, Federal Reserve Chair Jerome Powell emphasized last week that while sentiment has deteriorated, the tariff "shock hasn't hit yet."

Here are the latest updates as the policy reverberates around the world.