The agreement lowers tensions in the trade war but does little to change the overall direction of deteriorating ties between Beijing and Washington, analysts say.

Markets surged after US and China agreed to cut tariffs for 90 days.US stock market futures surged in premarket trade.US Treasury Secretary Scott Bessent said discussions with China were "robust."Stock markets surged on Monday after the US and China announced an agreement to slash some tariffs for 90 days following trade talks in Switzerland over the weekend.

The U.S. and China have agreed to slash tariffs on each other's goods for 90 days. Both sides will lower their tariffs on the other's goods by 115% for 90 days, U.S. Treasury Secretary Scott Bessent said early Monday. The pause will also allow for further negotiations.