The U.S. and China announced in a joint statement on Monday morning that both countries would be significantly reducing their tariffs during a 90-day period, a major breakthrough in trade negotiations. Both countries have engaged in escalating the penalties imposed on each others’ imports since President Donald Trump first imposed new tariffs on China in February.

The agreement stipulates that beginning May 14, China will reduce tariffs on U.S. imports from 125 percent to 10 percent, while the U.S. will lower its import duties on Chinese goods from 145 percent to 30 percent. Trump’s “fentanyl tariff” of 20 percent will remain in place, along with the President’s 10 percent universal tariff on imports.

The tariff rollback is only a temporary measure, and will expire after 90 days. Trade talks will continue, but the details of a potential long-term settlement remain unclear. “We do want trade,” Secretary of the Treasury Scott Bessent told reporters. “We want more balance in trade. And I think both sides are committed to achieving that.”