US, China agree to lower tariffs for 90 days

What happened

U.S. and Chinese negotiators Monday morning announced a 90-day lowering of tariffs while they work on a broader deal to end President Donald Trump's trade war with the world's No. 2 economy. Under the agreement, U.S. tariffs will fall to 30% from 145%, while China will cut its tax on U.S. imports to 10% from 125%. The new rates were slated to begin Wednesday.

Who said what

"We concluded that we have a shared interest," said Treasury Secretary Scott Bessent, who led the U.S. delegation in Geneva alongside U.S. Trade Representative Jamieson Greer. "The consensus from both delegations is that neither side wanted a decoupling." Asian markets and U.S. futures rose sharply on the news.

"Such a sharp U-turn by the U.S. on tariffs on a Monday morning is quite the surprise," said Arne Petimezas at AFS Group in Amsterdam, per Reuters. Trump "has toned down his tariffs faster than anyone thought he could." Don't "take everything we hear at the moment at face value," said Jan von Gerich at Nordea in Helsinki. "If you want to end up with low tariffs then why do it like this? It's still bouncy."

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What next?

The 90-day reprieve is a "more civilized way to divorce," Alicia García Herrero, the chief economist for Asia Pacific at the investment bank Natixis, said to The Washington Post. "The deal is not a solution," but "basically an attempt, hopefully successful, of avoiding a global recession."