The U.S.-China tariff deal sent the tech-heavy Nasdaq soaring, entering a bull market, and economists are optimistic that the U.S. may dodge a recession.

The relationship reset steers the U.S. economy back on a more familiar path as the major consumer of goods as economists lower recession odds.

Trump increases tariffs on all Chinese imports by 10 percent. China retaliates with 10 to 15 percent tariffs on U.S. coal and liquefied natural gas products, as well as agricultural equipment. Trump also announces a 25-percent tariff on all steel and aluminum products coming into the U.S., which comes into effect in mid-March.

A new U.S.-China agreement to pause sky-high tariffs on each other is pressuring manufacturing hubs such as Vietnam and Mexico to make their own, better deals with the U.S. to continue benefiting from a "China-plus-one" strategy by global producers.

The de-escalation provides both sides with breathing space to find a way to preserve trading ties that were threatening to grind to a halt.

Stock markets rose sharply as the globe’s two major economic powers took a step back from a clash that has unsettled the global economy. Economists warned that tariffs still remained higher than

China’s services sector is buckling under U.S. tariffs, with new data showing a dramatic slowdown in April — the latest

Tuesday’s report could provide an early read on how Trump’s duties will affect the prices Americans pay for necessities.