The U.S. and China came to terms on a 90-day pause on most tariffs between the two countries, following a weekend of trade talks in Geneva, Switzerland.

According to a release from the White House, the U.S. will temporarily reduce its 145% tariffs against China to 30% starting on May 14, while China will take its 125% tariffs against the U.S. down to 10%. Neither side reportedly made any other meaningful concessions, although there are plans to continue discussions over the course of the 90-day pause.

“We concluded that we have a shared interest,” Treasury Secretary Scott Bessent said in a May 12 news conference announcing the deal. "The consensus from both delegations is that neither side wanted a decoupling."

This effectively brings the U.S. tariff rate against China back to where it was before Trump's so-called "Liberation Day" announcement on April 2. The hope from the Trump administration in the days to come is to address the nearly $300 billion trade deficit the U.S. has with China, and to stem the flow of illegal fentanyl into the U.S. The White House also cited a need to encourage domestic production while maintaining the strength of the country's existing supply chains.

In the lead-up to the trade deal, U.S. ports were raising concerns over a slowdown in cargo volumes, as shippers paused orders out of China, and carriers suspended trans-Pacific sailing routes. It's unclear whether the 90-day pause will thaw that freeze in trade, although the S&P 500 gained nearly 3% in early trading on May 12, according to The New York Times.