The U.S. and China will cut tariffs on imports from each other as the world's two largest economies look to reach a broader deal on trade after months of tensions.
After a single weekend meeting, the two global superpowers agreed to slash tariffs set so high that nearly all trade between the two nations stopped.
"We achieved a total reset with China after productive talks in Geneva," Trump said Monday morning. "Both sides now agree to reduce the tariffs imposed after April 2 to 10% for 90 days as negotiators continue on the larger structural issues."
The U.S. will reduce its tariffs on China from 145% to 30% while the two nations continue to talk. China will cut its levies on U.S. imports from 125% to 10%, according to a joint statement from the two nations. Both sides will reduce tariffs by May 14.
A tariff is a tax on imported goods. The importer pays the tax and can either absorb the loss or pass the cost on to consumers through higher prices.
