The United States and China issued a joint statement Monday after a marathon round of trade negotiations in Geneva, Switzerland, over the weekend.

According to the statement, the world’s two largest economies have agreed to substantially reduce tariff rates — from Wednesday the U.S. will lower tariffs on Chinese goods from 145 percent to 30 percent, while China will reduce its tariffs on American imports from 125 percent to 10 percent.

The U.S. and China agreed that the tariff freeze would last an initial 90 days to allow room for further negotiations and move toward a potential trade deal.

“Both countries represented their national interest very well,” said U.S. Treasury Secretary Scott Bessent at a press conference in Geneva. “We both have an interest in balanced trade, the U.S. will continue moving towards that.”

“It’s important to understand how quickly we were able to come to agreement, which reflects that perhaps the differences were not so large as far as maybe thought,” said U.S. Trade Representative Jamieson Greer, before emphasizing that a key Trump administration goal remains reducing the U.S. trade deficit with China, which hit a record $263 billion last year.

Chinese Vice Premier He Lifeng described the talks as “candid, in-depth, and constructive.”

He stated that both countries have important roles to play in “stablizing the global economy and promote growth.”

“China is willing to work with the U.S. to actively implement key consensus reached during the two leaders’ [U.S. President Donald Trump and Chinese President Xi Jinping] phone call on January 17,” he said.

According to the statement, “the parties will establish a mechanism to continue discussions about economic and trade relations,” led by He on China’s side and Bessent and Greer from the U.S. side.

The talks will be conducted alternately in China and the U.S., or a third country upon agreement, noted the statement.

Markets reacted positively to the deal. Hong Kong’s Hang Seng Index rose nearly 3 percent, while European benchmarks in Germany and France increased by around 0.7 percent. The S&P 500 and Nasdaq futures climbed up to 3.5 percent.

However, analysts offered cautious views, citing uncertainty around future negotiations.

“We’ve had reassurance from the U.S. that negotiations will continue and that the tone of the negotiations have been positive and U.S. and China don’t want to decouple…That doesn’t mean that we’re back to where we were before the Trump inauguration, the 10 percent baseline tariff still exists everywhere, the 90 [day] pause is there and the clock is starting to tick,” said Jane Foley, head of FX strategy at Rabobank.

“The 90-day timeframe indicates these tariff cuts are a negotiation tactic rather than a permanent resolution, creating uncertainty about long-term trade policies,” said Aaron Hill, FP Markets’ chief analyst.