China and the US have agreed a truce in their trade tensions, finalising a deal to reduce punitive tariffs for a set period and sparking renewed market optimism.

Heightened US trade levies have prompted rapid moves to replace overseas parts in sectors such as chemicals and semiconductors, with negotiators claiming some progress while domestic self-reliance plans gather momentum.

Trump signals he may reduce tariffs on Chinese goods, with talks set to address lingering trade tensions.

Starmer has secured the UK’s first trade deal with the US since a contentious period, agreeing concessions on car and steel exports while retaining a flat 10% tariff on most goods.