Trump avoids repeating Herbert Hoover’s Smoot-Hawley tariff mistake, which led to companies slashing dividend payouts.

The US will cut the additional tariffs imposed on Chinese goods during US President Donald Trump’s second term to 30 per cent from 145 per cent while Chinese retaliatory duties on US imports imposed since April 2 will fall to 10 per cent from 125 per cent, the two countries announced on Monday.

The China deal, like the U.K. deal, still leaves the U.S. with much higher barriers to trade than it had before.

While investors will be more positive on the sector overall, Apple and Dell are among the tech companies that could see particular relief from recent developments.

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%

The S&P 500 logged its biggest gain in over a month after American and Chinese officials signaled a de-escalation in the trade war between the world’s two largest economies.