President Donald Trump's announcement that the U.S. and China will temporarily lower tariffs while they negotiate a new trade deal that will open up access China to U.S. businesses.

The temporary lowering of tariffs may compel some U.S. businesses to order goods that they had held off buying after President Trump raised them to 145 percent.

U.S. President Donald Trump could have the upper hand in subsequent trade talks with China as the nations hammer out further negotiations, according to Neo Wang, lead China economist and strategist at Evercore ISI.

While the White House backed off from its steepest levies on Chinese goods, economists say it’s still too early to declare the US economy is out of danger altogether. Recession risks remain, even if the odds of a downturn have been dialed back a notch.

The president and his team have backed down from their sharp rhetoric as they search for trade deals that could lower tariffs.

The U.S. and China on Monday agreed to an initial trade deal that cuts "reciprocal" tariffs from 125% to 10% for 90 days. Chinese officials, influencers and state-run media on Monday were casting the trade agreement with U.

The U.S. and China agreed to lower tariffs for 90 days. The details: U.S. tariffs on Chinese goods will fall to 30 percent from 145 percent. Meanwhile, China’s blanket tariffs on U.S. products will drop to 10 percent from 125 percent. A few tariffs will remain. President Donald Trump signed an order to lower prescription drug prices.

The temporary lifting of triple-digit trade levies between China and the U.S. while trade talks get under way removes the threat of an immediate stagflationary hit to the economy. This is very good news.