President Trump had imposed a 145% tariff on Chinese imports, while Beijing responded with a 125% levy on some US goods.

However, the US tariffs on Chinese imports will now be cut to 30% for 90 days, while Chinese tariffs on US imports will be cut to 10% for the same period of time. The pause will begin on 14 May.

The US measures still include an extra component aimed at putting pressure on Beijing to do more to curb the illegal trade in fentanyl, a powerful opioid drug.

The imposition of the tariffs had raised the prospect of trade between the two countries slumping, with US ports reporting a sharp drop in the number of ships scheduled to arrive from China.

Meanwhile Beijing has become increasingly concerned about the impact the tariffs could have on its economy. Factory output has already slowed and there are reports some firms were having to lay off workers as production lines of goods bound for the US began to grind to a halt.

Announcing the agreement, Bessent said: “The consensus from both delegations this weekend is neither side wants a decoupling.

“What had occurred with these very high tariffs was the equivalent of an embargo, and neither side wants that.

“We do want trade, we want more balanced trade, and I think that both sides are committed to achieving that.”

China’s commerce ministry said the agreement reached with the US was an important step to “resolve differences” and “lay the foundation to bridge differences and deepen co-operation”.

News of the agreement boosted stock markets, with Hong Kong’s benchmark Hang Seng Index ending the day up 3%. China’s Shanghai Composite Index had closed before details of the deal came out, and ended 0.8% higher.

European stocks rose in early trade and early indications were that the main US stock markets will open up by 2-3%.

[BBC]

A senior Palestinian official familiar with the negotiations told the BBC that Hamas’s announcement was intended as a goodwill gesture before Trump’s arrival.

He said another meeting between Hamas and the mediators was scheduled for early Monday morning to finalise the process of Edan’s release, which would require a temporary halt to Israeli military activity and a suspension of aerial operations during the handover.

President Trump confirmed Alexander’s release in a post on Truth Social, calling it “monumental news” and “a step taken in good faith”.

Born in Tel Aviv but raised in New Jersey, 21-year-old Alexander was serving in an elite infantry unit on the border with Gaza when he was captured by Hamas militants during the 7 October attack.

Of the 251 hostages taken during Hamas’s 2023 attack, 59 remain in the enclave, up to 24 of whom are believed to be alive. Five of the hostages in Gaza are believed to be US citizens and Alexander was thought to be the only one still alive.

In its statement, Hamas said the release was part of efforts to achieve a ceasefire and allow food, medicine and other supplies into Gaza – which has been under a complete blockade by Israel for 70 days. The group said it wanted to reach a final agreement to end the war.

The Israeli prime minister’s office said in a statement that it had been informed by the US of the Hamas intention to release Alexander “as a gesture towards the Americans” and that the move was expected to lead to negotiations on further hostages.

Israel’s policy was that negotiations would be conducted “under fire, based on the commitment to achieve all of the objectives of the war”, it added.