GENEVA (AP) — On Monday, the United States and China agreed to lower the high taxes on things they buy and sell from each other. This will help trade start again between the two biggest economies in the world. This news also made money markets around the world do well.

But the break in the trade problems between President Donald Trump and China did not solve the main issues between the two countries. The agreement is for 90 days, which gives American and Chinese officials time to try and make a bigger deal. However, the break also means that taxes on goods are still higher than before Trump started raising them last month. And companies and people who invest money are unsure if the break will last.

The U.S. will lower the tax on some products from China from 145% to 30%. China will also lower the tax on some products from the U.S. from 125% to 10%.

Greer and Treasury Secretary Scott Bessent said they would lower taxes on imported goods at a press conference in Geneva.

The officials sounded hopeful and said that both sides will talk more to solve their trade problems. They said the very high taxes on goods from each country are like stopping trade completely, and they don't want that. They want to trade.

The US is putting a 30% tax on goods from China. This tax includes a 20% tax that was already there. This older tax was to make China try harder to stop a drug called fentanyl from coming into the US. The new tax also has a 10% tax, like the one Trump put on goods from most countries. This 30% tax is added to other taxes on China. Some of these other taxes were started by Trump and are still used by President Biden.

Last month, Trump made the total tax 145%. He was angry because China was also putting more tax on US goods. But on Monday, he stopped.

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

This plan is what people who make and buy things in both countries want. It is good for both countries and for the world, the ministry said.

The two countries said together that China will also stop doing other things it did after the U.S. put taxes on its goods. China put more limits on selling special materials like rare earths, which are important for defense. China also added more American companies to lists that make it harder for them to do business in China.

Prices go up because the two groups are becoming calmer.

We still don't know how much the taxes and other 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 said that people from the U.S. and China will meet again soon.

But investors were happy because trade representatives from the two biggest economies in the world made a deal.

The S&P 500 stock market went up a lot, and the Dow Jones also went up. Oil prices increased, and the dollar became stronger compared to the euro and the Japanese yen.

Mark Williams said, "This is a big step down." But he also said, "We don't know if this stop for 90 days will lead to peace for a longer time."

Dani Rodrik, who studies money, said the two countries stopped a trade fight they didn't need. But he said the U.S. still has high taxes on things from China, and this will mostly hurt people who buy things in the U.S.

Trump did not get anything from China after he caused a lot of problems, Rodrik wrote.

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

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. He also said that for Trump, the stock markets were important. This deal was good for him because he still had power.

News from the U.S. and China made stock prices go up fast. In the U.S., futures went up more than 2%. Hong Kong stocks went up almost 3%, and stocks in Germany and France also went up by 0.7%.

Eswar Prasad, a professor at Cornell University, said that even if the taxes on goods are a little lower, and people are not sure what will happen with taxes later, it will still make it difficult for the two countries to trade and invest.

He said it is good for the world economy that U.S. taxes on imports might become important problems for trade, but not impossible ones to solve.

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

The boss said he told his team in China to send out the toys. They stopped sending them in April. Before the deal on Monday, he thought he would need to make prices 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 wanted us to be happy with something else bad, Foreman said.