Wall Street is set to open sharply higher after the US agreed to cut tariffs on Chinese goods to 30%, with China reducing its levies to 10%.

The United States and China said Monday they have agreed a deal to slash reciprocal tariffs as the world's two biggest economies seek to end a trade war that has put financial markets on edge.

U.S. and Chinese officials said they had reached a deal to roll back most of their recent tariffs and call a 90-day truce in their trade war.