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

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.

Donald Trump has made tariffs the focus of his economic agenda REUTERS

Economic 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.