President Donald Trump has significantly reduced the tariff on small parcels sent to the United States from mainland China and Hong Kong, after the impasse was broken in the two countries’ trade war following talks on the weekend.

U.S. President Donald Trump has said he would raise the case of jailed Hong Kong activist and former media tycoon Jimmy Lai as "part of the negotiation" with China over trade and tariffs, a move that could further stoke tensions with Beijing.

The 90-day pause is a major de-escalation in the tariff war and comes after talks between both countries in Geneva.