US and China reach agreement to reduce tariffs for 90 days

The United States and China have agreed to reduce their mutual export tariffs for 90 days as a result of talks in Switzerland.

US Treasury Secretary Scott Bessant said Washington and Beijing would temporarily reduce tariffs that had been raised to 115 percent. He described the talks as "productive and constructive."

It was the first official meeting between the two sides since US President Donald Trump imposed a 145% tariff on Chinese goods. In response, Beijing imposed a 125% tariff on US imports.

The trade war between the US and China has severely shaken financial markets and increased the risk of a global recession.

The US tariff on Chinese goods will now be reduced to 30%, while China's tariff on US goods will be reduced to 10%. The agreement will be valid for 90 days.