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 previous set of sky-high tariffs had threatened a surge in prices and a possible U.S. recession, experts told ABC News.

Stocks popped in early trading Monday after the United States and China agreed to dramatically lower tariffs for 90 days. The S&P 500 surged 2.8 percent, the Dow Jones Industrial Average jumped 2.3 percent, and the tech-heavy Nasdaq soared 3.8 percent in premarket trading.

12 May: The US and China announce a 90-day pause on "reciprocal" tariffs starting 14 May after holding trade talks in Switzerland. It will bring US tariffs on Chinese imports down from 145% to 30%, and Chinese tariffs on US goods will fall from 125% to 10%