(ECNS) -- In a significant shift from over a month of heightened trade tensions, China and the U.S. agreed to remove the majority of tariffs imposed since April 2 to ease trade tensions on Monday, bringing relief to global markets and businesses.

According to the Wall Street Journal, shortly after the release of the joint statement from the Geneva talks, U.S. companies reliant on Chinese imports rushed to ship previously delayed goods.

Few industries welcomed the tariff cuts more enthusiastically than California's pistachio growers, who had feared devastating losses in the "pistachio capital" of the U.S. The tariff rollback represents a lifeline for them.

Before the statement, the trade tensions that began with Washington's push for reciprocal tariffs in April had led to widespread product shortages and price hikes in the U.S., affecting goods ranging from toys to consumer electronics.

Jay Foreman, CEO of Basic Fun, a U.S. company that is known for classic toys like Care Bears and Tonka trucks, told American media NPR, that when he got the news at night, he immediately requested Chinese suppliers to dispatch Care Bears that had been held up for weeks due to tariff tensions.

American consumer confidence declined 7.9 points in April to 86.0, which represents 14,000 member companies from across the U.S. in every industrial sector, according to the National Association of Manufacturers. Inflationary fears spread, dragging down U.S. consumer confidence in April to its lowest levels since the onset of the pandemic.

Thee announcement of the joint statement on the China-U.S. Economic and Trade Meeting in Geneva triggered a surge in global equity markets.

China's Hang Seng Tech Index and the Nasdaq Golden Dragon China Index both jumped more than 5 percent, while three major U.S. stock indices each rose over 2 percent.

Reuters reported that the mutual tariff reductions reassured investors that a full-blown trade war may be avoided.

Yang Delong, chief economist and manager at First Seafront Fund, told China News Network that the easing of trade relations provides a positive signal for stock markets and boosts global investor confidence.

Investment banks responded quickly. Nomura Holdings Inc. strategists upgraded Chinese stocks to a "tactical overweight," according to Bloomberg. JPMorgan has raised its U.S. economic growth forecast, lowering its core inflation estimate from 4 percent to 3.5 percent, it said.

Citigroup raised its target for the Hang Seng Index by 2 percent on Monday, predicting it would reach 25,000 by the end of 2025 and 26,000 by mid-2026.

Tu Xinquan, dean of China Institute for WTO Studies, noted the Geneva negotiations reflect both sides' genuine desire to maintain and promote bilateral trade ties, laying the foundation for future dialogue.

In today's highly interconnected global economy, cooperation — not confrontation—is essential. The return of Care Bears to American shelves is just one small but telling sign that economic decoupling only weakens the global response to shared challenges.

(By Gong Weiwei)