US and China Agree to Lower Tariffs for Next 90 Days

The US and China have agreed a deal that will significantly cut the import tariffs they have imposed on each other, in a major de-escalation of their trade war.

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

The joint statement  came after the two countries held talks in Switzerland, the first between the two countries since US President Donald Trump had levied steep tariffs on Chinese imports last month.

The trade war between China and the US intensified last month after President Trump announced a universal baseline tariff on all imports to the US, on what he called "Liberation Day".

Around 60 trading partners, which the White House described as the "worst offenders", were subjected to higher rates than others, and this included China.

China retaliated with tariffs of its own, and this ratcheting up of levies ultimately led to the US imposing a 145% tariff on Chinese imports, while Beijing had a 125% levy on some US goods.

Under the new agreement, external the US and China have both suspended all but 10% of their Liberation Day tariffs for 90 days and cancelled other retaliatory tariffs.

This will cut US tariffs on Chinese imports to 30%, while Chinese tariffs on US imports will be cut to 10%. The pause will begin on 14 May.

Click here for further details from BBC News Business.