GENEVA (AP) — The United States and China said they will lower the taxes on things they buy from each other. This will help them trade again and is good news for the world's money markets.

But stopping the trade fight did not fix the problems between China and the United States.

The U.S. said it would lower the tax on Chinese goods from 145% to 30%. China also agreed to lower its tax on American goods from 125% to 10%.

Greer and Treasury Secretary Scott Bessent said they would lower the cost of imported goods at a meeting with reporters in Geneva.

Officials were positive and said they would keep talking about trade problems. Bessent said the high taxes on goods last month were like stopping trade completely, and neither side wants that. He said they want to trade.

America is putting a 30% tax on things from China. Part of this tax, 20%, is to help stop the drug fentanyl from coming into the US. Another part, 10%, is a tax that is also on things from many other countries. This new 30% tax is added to other taxes that are already on things from China.

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

China's Commerce Ministry said the agreement is an important step to solve the problems between the two countries and helps them work together more in the future.

This plan is good for producers and consumers in both countries. It helps both countries and the world.

China also said it would stop or change other things it started doing in April because of the US taxes. China had made it harder to send out rare metals, including some that are very important for making weapons. It also put more American companies on lists, which makes it difficult for them to do business with or in China.

Markets go up because the two sides are less angry.

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

Bessent told 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 changed their minds.

Stock prices for 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 for each barrel. The dollar became stronger compared to the euro and the Japanese yen.

Mark Williams said, "This is a big step to make things less tense." But he also said, "We don't know if the 90-day break will lead to a longer time of peace."

Dani Rodrik, an economist, said the two countries stopped fighting a trade war they didn't need. But the U.S. still puts high taxes on goods from China, around 30%. He said this will mostly be bad for people who buy things in the U.S.

Rodrik wrote on Bluesky that Trump did not get anything from China, even though he caused many problems.

Craig Singleton said the agreement happened fast because both countries had more money problems than they said.

Singleton said that China had economic problems. Many people lost their jobs, money went out of the country, and countries bought much less from China. For Trump, the economy was important, and this deal was good for him without losing his power.

After the U.S. and China made an announcement, stock markets went up a lot. Stock prices in the U.S. increased, and the main stock markets in Hong Kong, Germany, and France also rose.

Trade and investment between the two countries will still be limited. This is because the taxes on goods went down from very high to just high, and people are not sure what the taxes will be in the future, said Eswar Prasad, a professor who studies trade at Cornell University.

But he said it's a good sign for the world economy that the taxes the U.S. puts on goods might become big problems for trade, but not problems that are too difficult to deal with.

Jay Foreman, the boss of Basic Fun, said he was happy because the tax on Chinese goods is now 30%. But he hopes it will go down to 10%.

The boss said he told his team in China to send the toys. They stopped sending them in April. Before the deal on Monday, he thought prices would be twice as high. But prices will still go up by 10% or 15% in the next six months.

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