In a surprising turn of events, the United States and China have agreed to a mutual reduction of tariffs for a 90-day period, leading to a significant rally in global markets. The agreement, announced after high-level negotiations, sees the U.S. reducing tariffs on Chinese imports from 145% to 30%, while China lowers its tariffs on U.S. goods from 125% to 10%.

This unexpected move has been welcomed by investors worldwide, with major stock indices experiencing substantial gains. Analysts view this development as a positive step towards resolving ongoing trade tensions between the two economic powerhouses.

The 90-day period is seen as an opportunity for both nations to engage in further negotiations aimed at reaching a more comprehensive trade agreement. While the current reduction is temporary, it has significantly boosted investor confidence and is expected to have a positive impact on global economic growth.

Market analysts caution, however, that the long-term effects will depend on the outcomes of subsequent negotiations. Nonetheless, the current agreement marks a notable de-escalation in trade tensions and sets a hopeful tone for future discussions.