The US and China have agreed a deal that will significantly cut the import tariffs, or taxes, both sides have imposed on one another for a 90-day period.

Axar.az reports, citing BBC, US Treasury Secretary Scott Bessent said both countries would lower their reciprocal tariffs by 115% for 90 days.

The announcement 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.

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

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

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. The pause will begin on 14 May.