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.

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.

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

“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.

Online shoppers in the U.S. will see a price break on their purchases valued at less than $800 and shipped from China after the Trump administration reached a truce with Beijing over sky-high tariffs.

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.

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.

Prices will plunge if the United States and China fail to resolve their trade dispute limiting U.S. soybeans from their largest market, agribusiness consultancy AgResource said.

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.