The U.S. and China announced on Monday that tariffs against one another will be reduced for a 90-day period after officials held trade negotiations in Geneva, Switzerland.
The tariffs President Donald Trump announced against China on April 2 are being cut by 24 percentage points for this temporary period while retaining the remaining ad valorem rate of 10% from that announcement, according to a joint statement.
China agreed to the same stipulations, adding that it will "adopt all necessary administrative measures to suspend or remove the non-tariff countermeasures taken against the United States since April 2," the announcement stated.
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Under the deal, reciprocal tariffs for both countries would be reduced by 115%. The U.S. will temporarily lower its tariffs on Chinese goods from 145% to 30%, and China will reduce its levies on American products from 125% to 10%.
Both the U.S. and China agreed to take the aforementioned actions by Wednesday.
The countries highlighted the "importance of a sustainable, long-term, and mutually beneficial economic and trade relationship."
The two sides also agreed to "establish a mechanism" to continue discussions about economic and trade relations, which will be led by Chinese Vice Premier He Lifeng, U.S. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer, according to the joint statement.
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"These discussions may be conducted alternately in China and the United States, or a third country upon agreement of the Parties. As required, the two sides may conduct working-level consultations on relevant economic and trade issues," the statement said.
This agreement comes amid an intense trade war between the two countries over the past few weeks after Trump announced tariffs on many countries around the world.
"China was assigned a reciprocal tariff rate of 34%," Greer recalled while speaking in Geneva. "China was the only country that chose to implement retaliation against the United States for this reciprocal tariff. All other countries withheld and decided that they wanted to negotiate with the United States or simply not retaliate."
"The president increased our tariff rates to offset Chinese retaliation," he added. "And as you know, this escalated to a point where both sides had added 125% tariffs."