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](

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.

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.

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.