Asian shares were mostly higher Wednesday as a cautious sense of relief spread through regional markets after the U.S. and China agreed to a 90-day pause in their trade war. Japan's benchmark Nikkei 225 lost 0.

The U.S. agreed to cut tariffs on Chinese goods from 145% to 30%, while China committed to reduce tariffs on U.S. products from 125% to 10%. The lowered tariffs will remain in place for 90 days while the two sides negotiate a wider trade deal.

"Today’s announcement is a positive step that will allow some trade between the two countries to resume," said U.S.-China Business Council President Sean Stein

Treasury Secretary Scott Bessent said the U.S. and China could start work soon on a fuller trade agreement, after the countries struck a [temporary deal](

Prior to President Trump's second term, there was little back and forth between the U.S. and China on tariffs. Here's what to know.

President Donald Trump hailed a “total reset” in trade relations between the U.S. and China. But other trading partners may not find negotiations quite so smooth. To many, China may have appeared the toughest agreement to reach but Trump suggested otherwise, taking aim at the European Union Monday.

Most stock markets in the Gulf settled higher on Tuesday, although gains were limited as investors paused to weigh whether a temporary pause in the U.S.- China trade war would lead to a long-lasting agreement.

The relationship reset steers the U.S. economy back on a more familiar path as the major consumer of goods as economists lower recession odds.