US and China agree to slash tariffs on each other

The US and China have agreed to slash tariffs on each other as they seek to end their trade war.

Speaking after talks with Chinese officials in Geneva, US treasury secretary Scott Bessent told reporters the two sides had reached a deal for a 90-day pause on measures.

US trade representative Jamieson Greer said reciprocal tariffs were now at 10% each.

Tariffs, taxes on imports of more than 100%, had been imposed on both sides. China was the only country exempt from a 90 pause on the so-called retaliatory tariffs above the base 10% levies applied by America.

Major retailers had been warning President Donald Trump of empty shelves as US importers pause shipments.

Mr Bessent said after a weekend of negotiations in Switzerland, the countries had a mechanism for continued talks.

Prior to this morning’s announcement, both sides had talked up a potential deal, though no detail had been announced.

Chinese media described the meeting between China and the US as bringing about a mechanism for further talks through having agreed to establish “an economic and trade consultation mechanism”, while President Trump said the pair had “a total reset negotiated”.

However light on tangible announcements, the news was received positively by Asian stock markets on Monday as major indexes were up.

Even before the 90-day pause announcement in China, the Shanghai Composite stock index rose 0.7%, the Shenzhen Component gained 1.7%, and Hong Kong’s Hang Seng index was up 1.2%.

In countries across Asia, benchmark stock indexes also rose. Korea’s Kospi grew 1.1%, Japan’s Nikkei was up 0.8% while India’s Nifty 50 index of most valuable companies gained more than 3%.

This breaking news story is being updated and more details will be published shortly.

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