The world’s two biggest economies agreed to a temporary rollback of most of their recent levies after negotiating in Switzerland over the weekend.

The White House backed off from the steepest levies, as the costs of an all-out trade war with China threatened global economic growth.

President Donald Trump's plan for tariffs on imports has guided the stock market's direction over the past few weeks. The initial plan, with double-digit tariffs for countries around the world, shook the market, even pushing the Nasdaq Composite ( ^IXIC 1.61%) to fall into a bear market.

The lead U.S. negotiator in trade talks with China cheered “a great deal of productivity” in resolving differences between the world’s two leading economic powers, after officials wrapped two days of bargaining in Switzerland following President

The United States and China slashed sweeping tariffs on each others' goods for 90 days on Wednesday, marking a temporary de-escalation in a brutal trade war that roiled global markets and international supply chains.

It’s unlikely the U.S. and China can erase the tension in their geopolitical rivalry. But they can manage it. The current talks provide a key avenue.

As the U.S. and China negotiate a trade deal, Trump has lowered a levy on “de minimis” low-value packages, such as online shopping from Shein or Temu.

Beijing is trying to win over other countries with vows of economic cooperation. But it won’t back down from its territorial claims, experts predict.