Consumers in crossfire despite US-China trade war truce

Consumer sentiment has rebounded after the US tariff shocks, but is still in negative territory. (Con Chronis/AAP PHOTOS)

Consumer confidence is improving, but Australians have been urged to temper their expectations after the treasurer noted the limits of a US-China trade truce.

Both nations have agreed to a 90-day tariff reduction, with the United States committing to dropping 145 per cent levies on China to 30 per cent and Beijing lowering its 125 per cent duties on American imports to 10 per cent.