In a research note, Maeva Cousin of Bloomberg Economics said today’s move “substantially lowers the US average tariff shock on China,” though the remaining import taxes remain high and could still cut US imports from China by about 70% in the medium term.

Both sides are hailing the temporary reprieve, which will see American duties on Chinese goods cut to 30 percent, but analysts say the underlying issues remain.

US and Chinese officials are set to start talks this week to try to deescalate a trade war between the world's two biggest economies. Chinese Vice Premier He Lifeng will attend the talks in Switzerland from 9 to 12 May, China's Ministry of Foreign Affairs says.