US and China have agreed a temporary cut to the tariffs they impose on each other’s imports.

US Treasury Secretary Scott Bessent said both countries would lower their reciprocal tariffs by 115% for 90 days.

The announcement came after both China and the US had held trade talks in Switzerland over the weekend, which Bessent had previously described as “productive and constructive”.

It was the first meeting between the two countries since US President Donald Trump had levied steep tariffs against China on its goods entering America in January.

Trump had imposed a 145% tariff on Chinese imports, while Beijing responded with a 125% levy on some US goods.

The huge tariffs caused turmoil in the financial markets and sparked fears of a global recession.

However, the US tariffs on Chinese imports will now be cut to 30% for 90 days, while Chinese tariffs on US imports will be cut to 10% for the same period of time.