We have reached an agreement on a 90-day pause and have made significant reductions in tariff levels, says US Finance Minister Scott Bessent at a press conference in Geneva.
We had a plan. We have a process underway. And now, together with the Chinese, we have a mechanism for continued talks, he says.
He says that none of the countries want to create a wall of tariffs that stops all trade between the countries.
We want trade. We want more balanced trade. I believe that both sides are committed to achieving that, says Bessent.
The US is lowering tariffs against China from 145 to 30 percent in 90 days, reports Bloomberg. China is in turn lowering tariffs on US goods from 125 to 10 percent during the period.
The aim is, according to identical statements from Washington and Beijing after the weekend's negotiations in Geneva, to create time to settle the trade conflict between the world's largest economies.
At the same press conference, US Trade Representative Jamieson Greer says that the talks on tariffs over the weekend were characterized by "mutual understanding and mutual respect".
The Hong Kong stock exchange surges 3.6 percent after the announcement, while futures trading on Wall Street points to a strong stock market rise on Monday.
The dollar strengthens simultaneously to its strongest rate against the Japanese yen in a month and strengthens against the euro.
