Trade war de-escalation: US, China decide to roll back most tariffs for 90 days

The announcement was made after the US and Chinese officials were engaged in a week-long trade negotiation in Switzerland.

As per the statement, the US will temporarily reduce its tariffs on Chinese goods from  145% to 30% by May 14.

Similarly, China, during the same period, will cut its levies on American imports from 125% to 10%.

"The Parties will establish a mechanism to continue discussions about economic and trade relations," the statement said.

"The representative from the Chinese side for these discussions will be He Lifeng, Vice Premier of the State Council, and the representatives from the U.S. side will be Scott Bessent, Secretary of the Treasury, and Jamieson Greer, United States Trade Representative," the statement said.

These discussions may be conducted alternately in China and the United States, or a third country upon agreement of the Parties, the joint statement said.

"As required, the two sides may conduct working-level consultations on relevant economic and trade issues," the statement said.

The US and China were engaged in a tough trade battle after Donald Trump returned to power for his second term earlier this year.