The United States and China have agreed to roll back some of the steep tariffs they placed on each other’s goods, giving both sides 90 days to cool tensions and continue negotiations.

Under the deal, U.S. tariffs on Chinese imports will drop from 145% to 30%, while China will cut its own tariffs on American goods from 125% to 10%. The change takes effect Wednesday and follows a weekend of intense talks in Geneva between trade officials from both countries.

President Donald Trump’s 20% fentanyl-related tariff will stay in place, but most of the broader trade war measures will be temporarily relaxed.

Treasury Secretary Scott Bessent said both sides wanted to get back to doing business.

“The consensus from both delegations is neither side wants to be decoupled, and what have occurred with these very high tariffs…was an equivalent of an embargo, and neither side wants that. We do want trade. We want more balance in trade,” Bessent said.

The agreement was unexpected. A week ago, Bessent said the goal was simply to “de-escalate,” not reach any big breakthrough.

Chinese officials also shifted their tone, calling the agreement good for both countries.

China’s commerce ministry called the move a win for “producers and consumers in both countries,” and said Washington should “completely correct” its trade stance.

“As regards the timing for the release of the joint statement, as we say back in China, if the dishes are delicious, then timing is not a matter,” said Chinese Vice Minister of Commerce Li Chenggang. “So I think no matter when this statement is released, it’s going to be … big news, good news for the world.”

The tariff cuts come as both economies feel the squeeze. Last quarter, the U.S. GDP shrank as businesses rushed to import goods ahead of higher duties. China’s factory activity also fell, and exports to the U.S. dropped sharply.

The two sides also agreed to keep talking. Bessent, Greer, and Chinese Vice Premier He Lifeng will lead a new trade discussion “mechanism,” with meetings rotating between countries or taking place in a third location if needed.

For now, the temporary pause offers some breathing room.