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.

The United States and China will temporarily lower tariffs on each other's products, according to a joint statement, in a move to cool trade tensions and give the world's two largest economies three more months to resolve their differences.

The United States and China agreed on some preliminary changes to trade, ending a monthslong tariff standoff that worried global markets.

In a research note, Maeva Cousin of Bloomberg Economics said today’s move “substantially lowers the U.S. average tariff shock on China,” though the remaining import taxes remain high and could still cut U.S. imports from China by about 70 per cent in the medium term.

Beijing is eager to re-set trade relations with the United States amid ongoing negotiations to resolve the two countries' trade war, a top White House economic aide said on Sunday.

The perception that China likely does not face an existential threat from the United States has had a stabilizing effect on policy in Beijing, which has responded to Trump’s escalation of trade tensions in April with patience,

It’s important to understand how quickly we were able to come to an agreement, which reflects that perhaps the differences were not as large as maybe thought.”

The United States expects a 10 percent baseline tariff to be in place for the foreseeable future for countries across the globe amid trade tensions, according to a report in The Hill. Commerce Secretary Howard Lutnick stated this expectation on CNN's "State of the Union" this past Sunday.