The United States and China agreed to lower the taxes on goods they trade. This will help them trade more and is good news for money markets around the world.

Stopping the trade fight didn't fix the main problems between China and the US. They have 90 days to talk and try to make a bigger deal. But some taxes are still higher than before. Businesses and people who invest money don't know if the agreement will continue.

An American official said the U.S. will lower a large tax from 145% to 30%. China will also lower its tax on American goods from 125% to 10%.

Greer and the Treasury Secretary, Scott Bessent, said they would make taxes on imported goods lower at a meeting with reporters in Geneva.

The officials were happy and said they would meet again to talk about their trade problems. One official, Bessent, said the high taxes they put on each other last month were like stopping trade completely. He said they do not want to stop trade, they want to continue trading.

America is now adding a 30% tax on goods from China. This tax is made of two parts. One part is a 20% tax that was already there. This older tax was put in place to make China work harder to stop a drug called fentanyl from coming into the US. The other part of the 30% tax is a 10% tax that Mr. Trump put on goods from most countries. So, the 30% tax is extra, added to other taxes on China. Some of these other taxes were started by Mr. Trump and President Biden still uses them.

Last month, Trump increased the total tax to 145%. He was angry because China was doing the same thing, but he changed his mind on Monday.

China said the agreement is a good step to solve problems between the two countries and will help them work together more.

A ministry statement said this plan is good for producers and consumers in both countries. It also helps both countries and the world.

The two countries said together that China will also stop or remove other things it has done since April 2 because of the U.S. taxes. China has made it harder to send out rare metals, some of which are very important for making things for the army. China has also put more American companies on lists that make it difficult for them to do business with China.

Markets go up because the two sides are less angry.

We still don't know how the difficult taxes and other trade rules from Washington and Beijing will really affect things. It depends a lot on if they can solve their old problems in the next 90 days.

Bessent said on CNBC that people from the US and China will meet again soon.

But investors were happy because trade officials from the world's two biggest economies made a deal.

Stock prices went up today. The S&P 500 and the Dow Jones went up by about 2%. Oil prices also went up. The dollar became stronger than the euro and the Japanese yen.

Mark Williams said, "This is a big step down." But he also said, "We don't know if the 90-day break will lead to a long peace."

Dani Rodrik, an economist from Harvard University, said the two countries stopped a trade fight that was not needed. But the US taxes on China are still high at 30% and will mostly hurt people who buy things in the US.

Rodrik wrote on Bluesky that Trump got nothing from China, even though he caused many problems.

Craig Singleton said the deal happened fast. He said this means both countries had more money problems than they told people.

Singleton said China had economic problems. Many people lost their jobs, money left the country, and companies sold less to other countries. He also said Trump cared about the money markets and this deal was good for him because he still had power.

When the U.S. and China made their announcement, stock prices went up a lot. Stock futures in the U.S. went up by more than 2%. The Hang Seng index in Hong Kong went up by almost 3%. The main stock markets in Germany and France also went up by 0.7%.

When the cost of goods from other countries went down a little, but people still weren't sure if the costs would go up or down again, it made it harder for the two countries to trade and for companies to invest in each other, said Eswar Prasad, who teaches about trade at a university.

He said it is a good sign for the world economy that U.S. taxes on imports could become big problems for trade, but not problems that are too difficult to solve.

Jay Foreman, who is the boss of the toy company Basic Fun, was happy because the tax on Chinese toys was now 30%. But he wants the tax to be only 10%.

The boss said he told his team in China to send the toys. They stopped sending them in April. He thought he had to make prices twice as high, but now they will go up by 10% to 15% later in the year.

Foreman said, "It's like they gave us something bad and thought we would be happy with something else bad."