The US and China have reached an agreement to pause tariffs for 90 days, the US Treasury Secretary Scott Bessent has announced.
The "reciprocal" trade tariffs are set to be reduced by 115 per cent following "robust" negotiations.
Bessent made the announcement while speaking in Geneva after the two nations held "productive and constructive" trade talks over the weekend.
China's commerce ministry confirmed the suspension of "all tariff countermeasures" taken against the US since 2 April.
The US and China have reached an agreement to pause tariffs for 90 days, the US Treasury Secretary Scott Bessent has announced
Getty/Reuters
US President Donald Trump had implemented steep tariffs against China on its goods entering America following his return to Office in January.
Trump had imposed a 145 per cent tariff on Chinese imports, while Beijing responded with a 125 per cent levy on some US goods.
The weekend meeting was the first between the two countries this year.
Tariffs have been at the centre of the US President's economic policy since regaining control of the White House, causing market turmoil.
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China's commerce ministry confirmed the suspension of 'all tariff countermeasures' taken against the US since April 2
ReutersEconomic experts around the world have warned of a global recession after a sharp drop in US markets.
Stock markets then surged after US Treasury Secretary Scott Bessent said neither the US nor China wanted to see a “decoupling” of relations.
However, the US tariffs on imports from China will now be cut to 30 per cent for 90 days.
Chinese tariffs on US imports will be cut to 10 per cent for the same period of time.
Donald Trump has made tariffs the focus of his economic agenda REUTERSThe FTSE 100 jumped as much as one per cent at the start of trading, while Hang Seng in Hong Kong jumped more than three per cent.
Wall Street stocks were also on track to open around three per cent higher.
Trump implemented worldwide tariffs during his “liberation day” last month.
The UK were hit with a blanket tariff of 10 per cent on imports of most British goods entering the US.
Sir Keir Starmer and the US President agreed a trade deal on May 8, reducing or removing tariffs on some of the UK's exports, including cars, steel and aluminium.
