The U.S. agreed to cut tariffs on Chinese goods from 145% to 30%, while China committed to reduce tariffs on U.S. products from 125% to 10%. The previous set of sky-high tariffs had threatened a surge in prices and a possible U.S. recession, experts told ABC News.

The U.S. has agreed to drop its 145% tariff rate on Chinese goods to 30%, while China has agreed to lower its rate on U.S. goods to 10%.

Wall Street opened higher on Monday after the US agreed to cut tariffs on Chinese goods to 30%, with China reducing its levies to 10%.