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

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.

White House economic advisor Kevin Hassett said the Chinese were "very, very eager" to rebalance trade relations with the United States.

The United States and China have agreed to a 90-day pause on tariffs, which means the ultra-high tariff levels between the two countries will now drop sharply.

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.

Oil prices soared following an agreement between the United States and China to slash tariffs, leading to increased optimism in global trade and the economy.

China warns the US to stop blaming it for the fentanyl crisis, highlighting ongoing trade tensions and calls for constructive dialogue.- Watch Video on English Oneindia

The S&P 500 logged its biggest gain in over a month after American and Chinese officials signaled a de-escalation in the trade war between the world’s two largest economies.