Markets rally after Washington and Beijing agree to drastically cut reciprocal tariffs as US treasury secretary says ‘neither side wants a decoupling’

• Analysis: Trump might claim victory – but this is Capitulation Day

Donald Trump hailed a “total reset” in relations between China and the US after the countries agreed a 90-day pause to the deepening trade war that has threatened to upend the global economy, with tariffs to be lowered by 115 percentage points.

“They’ve agreed to open up China,” the US president claimed at a press conference at the White House on Monday morning, having spent months escalating tensions with Beijing by ratcheting up tariffs on the country’s exports.