The United States and China have agreed to suspend tariffs on some of each other's goods for 90 days following talks in Geneva. The suspension applies to certain tariffs previously imposed in April 2025 and will take effect by May 14.The agreement lowered the total tariff rate on targeted goods from 145% to 30%. Both countries will retain a 10% ad valorem rate while suspending 24 percentage points of their additional tariffs. China will take steps to withdraw tariffs and suspend or eliminate non-tariff countermeasures imposed since April 2.The announcement marks a move to ease the tariff war, which has triggered a sharp decline in transpacific trade. The move also sent Chinese stocks soaring and Dow futures surging by more than 900 points. The agreement also came under the administration of President Donald Trump, who previously declared a national emergency over the US trade deficit of $1.2 trillion. The White House had imposed tariffs as part of its response.The trade agreement followed recent discussions between both governments and reflects an effort to maintain open communication and economic cooperation. The two sides will set up a bilateral mechanism to continue dialogue on trade issues. China's Vice Premier He Lifeng, US Treasury Secretary Scott Bessent, and US Trade Representative Jamieson Greer led the discussions, which took place in Geneva, Switzerland.“We made substantial progress,” Bessent said. “The talks were productive.” Greer added, “This was a constructive two days. The speed of the agreement suggests the differences may not have been as large as initially thought.”