New Delhi, May 13 -- In a development that has brought palpable relief to trade and economic circles, the US and China have hit the pause button on a debilitating tariff war that threatened to derail world trade, cripple supply chains, and push the world towards a potential recession.

Weekend talks at Geneva between top officials of the two countries saw the US agree to cut tariffs on Chinese goods from 145% to 30%. Likewise, China agreed to lower tariffs on US imports from 125% to 10%, according to a joint statement issued by them on Monday. However, key sectors such as steel, aluminum, and automobiles are not covered under this arrangement, with 25% tariffs remaining in effect for all US trade partners.

Further, the rolled-back tariff...