The Trump administration has calmed business fears of a trade war, announcing both the U.S. and China will pause impending tariffs on one another’s exports for 90 days.

In the meantime, each side lowered its announced tariffs by 115%: The U.S. reduced tariffs from 145% to 30%, while China cut tariffs from 125% to 10%. China almost removed a series of barriers by refusing to export rare earth metals and investigating U.S. chemical giant Dupont for monopoly. Stocks soared Monday, with the Dow Jones industrial average closing up 1,160 points and S&P rising 3.26%.

“By lowering the tariffs, you’re not disrupting supply chains,” Senator Ron Johnson (R-Wis.) told “Washington Watch with Tony Perkins” on Monday. “It’s brought a little bit more certainty and stability … to the economy, which is what private sector investors are looking for.”

“The consensus from both delegations this weekend is neither side wants a decoupling,” said Treasury Secretary Scott Bessent in Geneva. “We want more balanced trade. … We would like to see China open to more U.S. goods.”

The move signaled the president had stepped back from economic brinkmanship with China. But it fulfills President Trump’s long-term strategy for trade. 

“His entire campaign, he said he wanted to put a 10% global tariff on the world with higher tariffs on China, around 50-60%, and guess where we are today? All in on China. It’s about 50% and 10% on the world,” U.S. Trade Representative Jamieson Greer told Laura Ingraham on Monday night, counting tariffs imposed in the first administration. “He’s doing exactly what he said. … The president’s plan is being carried out exactly.”

Yet Greer noted Trump made China the “first target” of his first administration, imposing 25% tariffs “on most goods that come from China, including on steel and aluminum and a host of other high technology products.”

Greer observed that the threatened, additional 34% tariff on Chinese goods “could still happen,” The CCP “has a 90-day pause to negotiate.”

The agreement with China builds on additional trade wins. The Trump administration unveiled an agreement with the U.K., imposing a 10% tariff on all goods.