The United States and China agreed to lower some taxes on goods they trade. This helped them start trading again and made money markets around the world better.

But this break in the trade problems did not solve the main disagreements between China and America.

The U.S. said they would make a tax lower, from 145% to 30%. China also said they would make their tax on U.S. things lower, from 125% to 10%.

Greer and Scott Bessent, who works for the government with money, said they would make the taxes on things from other countries cheaper. They told this to people who write news at a meeting in Geneva.

The officials were happy and said the two countries would meet again to talk about their trade problems. Bessent said the very high taxes they put on each other last month were like stopping trade completely, and nobody wants that. We want trade.

The US is putting a 30% tax on things from China. This tax is made of two parts. One part is 20% and is to help stop the drug fentanyl from coming into the US. The other part is 10%, which is a tax the US puts on things from many countries. This 30% tax is extra, because the US already has other taxes on China. Some of these taxes were started by President Trump and are still used by President Biden.

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

China's Commerce Ministry said the agreement is a good step to solve the problems between the two countries and will help them work together more in the future.

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

The two countries said China also agreed to stop or remove other actions it has taken since April 2 because of the U.S. taxes on imports. China has made it harder to send out some important materials, including some needed for the military. It has also added more American companies to lists that limit their business with and in China.

Markets go up because the two sides are becoming calmer.

We still don't know how the taxes and other trade rules from the US and China will change things. It depends on if they can solve their old problems in the next 90 days.

Bessent said that people from the U.S. and China will meet again soon.

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

The price of the S&P 500 went up by 2.6%, and the Dow Jones Industrial Average went up by 2%. The price of oil went up by more than $1.60 a barrel. The dollar became stronger than the euro and the Japanese yen.

This is a big step down, said Mark Williams. But he said there is no promise that the 90-day break will become a long-term peace.

Dani Rodrik, an economist from Harvard University, said that the U.S. and China stopped a trade fight that was not needed. But he said the U.S. still has high taxes on things from China, around 30%. He thinks this will mostly be bad for people who buy things in the U.S.

Rodrik wrote that Trump did not get anything from China after he caused many problems.

Craig Singleton said the deal happened fast because both countries had money problems they didn't talk about.

Singleton said that China had big economic problems. More people lost their jobs, money left the country, and they sold fewer things to other countries. This was the fastest fall in almost two years. He also said that for Trump, the money markets were important. This deal was good for him because he kept his power.

Because the U.S. and China made an announcement, stock prices went up a lot. In the U.S., stock prices for the future went up more than 2%. In Hong Kong, stock prices went up almost 3%. In Germany and France, stock prices went up 0.7%.

When the taxes on goods went down a little, and because people are not sure if they will change again, it will still make it difficult for the two countries to trade and invest with each other, said Eswar Prasad, a teacher at Cornell University.

He said it is good for the world economy that US taxes on imports might become big problems for trade, but not problems that are impossible to solve.

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

The boss said he told his team in China to send the toys. They had stopped sending them in April. He thought he would have to make the toys twice as expensive, but now the prices will only go up a little later this year.

It's like they gave us a bad choice and hoped we would be happy with another bad choice, Foreman said.