The United States and China agreed on Monday to lower their high taxes on imported goods. This will help trade start again between the two biggest economies in the world and caused global financial markets to increase.

However, ending President Donald Trump's trade conflicts did not fix the basic disagreements between Beijing and Washington. The agreement is for 90 days, allowing time for U.S. and Chinese negotiators to make a more significant deal. But this break also means taxes on imports are higher than before Trump began increasing them last month. And companies and investors still face uncertainty about if the agreement will continue.

Jamieson Greer, a U.S. trade official, said the U.S. agreed to lower the 145% tax Trump put in place last month to 30%. China also agreed to lower its tax on U.S. products from 125% to 10%.

Greer and Treasury Secretary Scott Bessent said they would lower taxes on imports at a news conference in Geneva.

Officials sounded positive, saying the two sides would continue talks about their trade problems.

The United States is now putting a 30% tax on some goods from China. This tax has two parts: a 20% tax to get China to do more to stop the drug fentanyl from coming into the US, and a basic 10% tax that was also put on goods from most other countries. This 30% tax is added to other taxes already on Chinese goods, including some that were started by a previous president and continued by the current one.

Last month, Trump increased the total tax to 145% because he was angry that China was fighting back, but he changed his mind on Monday.

China's Commerce Ministry said the agreement was a significant step towards solving the problems between the two countries and that it creates a basis for future teamwork.

According to the ministry, this plan is good for producers and consumers in both countries, helps both nations, and also benefits the world.

In a joint statement, the two countries announced that China would also stop or remove other actions it has taken since April 2 because of the US tariffs. China has increased controls on exporting rare earths, including some that are important for defense. It has also added more American companies to lists that limit their business in China.

Markets go up as the two groups reduce tension.

We still don't fully understand the effect of the complicated taxes and trade rules started by the US and China. A lot depends on if they can solve their old disagreements in the next 90 days.

Bessent said in an interview that officials from the U.S. and China will meet again in a few weeks.

But investors were happy when trade officials from the world's two largest economies changed their minds.

The S&P 500 stock index is expected to rise by 2.6%, and the Dow Jones index by 2%. Oil prices increased by over $1.60 for a barrel, and the dollar became stronger compared to the euro and the Japanese yen.

"This is a big step down," said Mark Williams, chief Asia economist at Capital Economics. But he warned "we cannot be sure that the 90-day break will lead to lasting peace."

Dani Rodrik, an economist at Harvard University, said the two countries avoided a trade war they didn't need. But, the U.S. still has high taxes on Chinese goods, about 30%, which will mostly harm American shoppers.

Trump didn't get anything from China, even though he caused a lot of problems, Rodrik wrote online.

Craig Singleton, a director at the Foundation for Defense of Democracies, said the quick agreement showed that both countries faced more economic problems than they admitted.

Singleton said that China had real economic problems, like more people losing their jobs, money leaving the country, and fewer export orders. He added that for Trump, the stock markets were important, and this deal was a success for him without losing his power.

After the U.S. and China made their announcement, stock prices increased quickly. In the U.S., future stock prices rose by over 2%. Hong Kong's Hang Seng index went up by almost 3%, and the main stock indexes in Germany and France both rose by 0.7%.

Eswar Prasad, a professor at Cornell University who studies trade policy, said that even though taxes on imports are lower than before, they are still high. He added that not knowing what these taxes will be in the future will still limit trade and investment between the two economies.

He said it is a good sign for the world economy that U.S. tariffs might become important trade barriers, but not ones that are impossible to overcome.

Jay Foreman, the leader of Basic Fun toy company, was happy that the tax on Chinese goods went down to 30%. But he hopes it will go even lower, to 10%.

Foreman said he told his team in China to send the toys that had been stopped since April. He expected to double prices before the agreement on Monday, but they will still rise by 10% to 15% in the last half of the year.

"It's like they gave us a bad choice and expected us to be happy with another bad choice instead," Foreman said.