The United States and China say they have agreed to cut each other's additional tariffs by 115 percentage points. Some of the slashed duties will be paused while the two sides continue negotiations on rates.

The agreement defused a conflict that has seen the world's two largest economies impose tariffs of over 100 percent on each other since April.

The joint statement follows trade talks held between the two countries in Switzerland. It says Beijing will bring down its extra levies on American imports from 125 percent to 10 percent.

The statement says some of the slashed import duties will be suspended for 90 days while the two sides continue discussions on the rates.

Washington will reduce its additional tariff on Chinese goods from 145 percent to 30 percent.

The US will pause for 90 days most of the duties which President Trump calls "reciprocal" tariffs that he imposed on April 2.

The result is that import duties will be set at 30 percent while these negotiations continue.

US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer talked to reporters on Monday.

Bessent said: "We do want trade, we want more balanced trade, and I think that both sides are committed to achieving that. We would like to see China open to more US goods. We expect that as the negotiations proceed there will also be the possibility of purchase agreements to pull what is, our largest bilateral trade deficit into balance, that has gotten out balance."

The two countries also agreed to establish a mechanism to continue their negotiations.

The agreement was apparently aimed at ending a tit-for-tat battle that was creating increasing uncertainty for the economies of both the US and China.