WASHINGTON – The Trump administration and China have agreed to slash tariffs for the next 90 daysin a push to deescalate a trade warbetween the world's two largest economies while the two sides continue to negotiate a long-term agreement. The deal marks a momentary retreat forPresident Donald Trump, who haddefended his steep tariffson Chinese imports as critical to rejuvenate domestic manufacturing in the United States even as the movesrattled global marketsandstoked economic anxietiesamong Americans. Trump touted the agreement from the White House Roosevelt Room on May 12 after his top economic officials came to a consensus following two days of negotiations in Geneva with their Chinese counterparts. He didn't rule out raising tariffs on China again if a final agreement isn't reached in 90 days. More:Trump promised to improve the economy on Day 1. Americans are still waiting. "We achieved a total reset with China after productive talks in Geneva," Trump said. "The best part of the deal was that we opened up China. China agreed to open itself up to American business." Here's what we know about the agreement: Under the deal, the United States will reduce 125% reciprocal tariffs imposed on Chinese imports for 90 days by 115% – to a 10% baseline tariff, which matches the tariffs the Trump administration has imposed on other countries. Trump's 20% tariffs slapped on China over fentanyl production will remain, meaning the U.S. tariffs on China will total 30% overall. "We're not looking to hurt China. China was being hurt very badly," Trump said. "They were closing up factories. They were having a lot of unrest, and they were very happy to be able to do something with us." Trump said if China does not agree to a final resolution after 90 days then he would raise the tariffs again but not back up to 145%. "No," Trump said when asked whether the rate would return to 145%. "But they would go up substantially higher." Live updates:US and China agree to slash reciprocal tariff levels In turn, the Chinese government has agreed to reduce its retaliatory tariffs on U.S. exports for 90 days from 125% to 10%. Trump said Chinese leaders also agreed to remove or suspend various non-tariff countermeasures that China has taken against the United States and to cut off the flow of fentanyl to the United States. "Both sides represented their national interest well, but we also concluded that we had shared interest and that neither side was interested in a decoupling," said Treasury Secretary Scott Bessent, who discussed the agreement with reporters in Geneva alongside U.S. Trade Representative Jamieson Greer. The deal does not apply to universal 25% tariffs that Trump imposed on automobiles, auto parts, steel and aluminum. Both countries are to reduce their tariffs by May 14. The U.S. stock marketsurged on newsof the 90-day pause, with the Dow Jones Industrial Average soaring by more than 1,100 points, 2.8%. The S&P 500 and tech-heavy Nasdaq also rallied significantly. For weeks, the stock market has been a seesaw amid Trump's on-and-off-again tariff regime. China's Vice Premier He Lifeng said an "important consensus was reached" following what he described as "candid, in-depth and constructive" negotiations in Geneva. Lefeng said the two sides agreed to establish "a China-U.S. economic and trade consultation mechanism" to guide future talks. Bessent made clear that talks between the Trump administration and China will continue as the United States seeks to end China's trade imbalance. He said the two sides now have a better foundation following the 90-day pause. "We look forward to very good discussions now that we have the mechanism created in Geneva this weekend," Bessent said. Heading into the two days of negotiations, Trump signaled a willingness todrop U.S. tariffs on China to an 80% rate. But Trump's agreement reached with China is a significantly larger reduction. "Everything is a negotiation," Greer said when asked about the substantial tariff reduction, adding that Trump gives his economic team advice on how to proceed. "And we ended up at a result that is very good for the United States and very good for China as well." In case you missed:Trump officials say trade deal reached with China but details remain unclear The massive tariffs from both countries virtually halted $600 billion in annual trade between them. Trump has singled out China, which exported nearly $300 billion more in goods into the United States than it imported, as the top offender of a $1.2 trillion U.S. trade deficit, which he said has decimated U.S. manufacturing. "We want more balanced trade, and I think that both sides are committed to achieving that. We would like for China to open for more U.S. goods," Bessent said, adding that purchase agreements from China for certain U.S. products could be a possibility as negotiations proceed. Trump's decision to pause reciprocal tariffs on China means he has now twice backed off more sweeping levies he originally imposed on imports. In April,Trump paused reciprocal tariffson most countries except for China, lowering the rate to a universal baseline 10% tariff. Democrats were quick to criticize Trump's latest reprieve. "Sadly, it looks like China once again got the better of Trump," Senate Minority Leader Chuck Schumer, D-New York,said in a post on X. "Another example of Trump chaos. He has one policy one day, one the next. Who knows what it'll be tomorrow." Reach Joey Garrison on X @joeygarrison. This article originally appeared on USA TODAY:Trump, China agree to slash tariffs for 90 days: What to know
