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“We came to the conclusion that we have a common interest,” said finance minister Scott Bessent at a press conference in Geneva, in which USAM weekend US and Chinese officials met. “The consensus from both delegations is that no side wanted a decoupling,” he said.

China said that countermeasures would be suspended or revoked that are adopted for retaliation for escalating tariffs. At the beginning of April, the Chinese government ordered restrictions on the export of rare earth metals and magnets, critical components used by many industries, including car manufacturers, manufacturers of aviation manufacturers and semiconductor companies.

Mr. Bessent said that the two countries could discuss the Chinese government about the sales contracts of American goods. Such a deal could help restrict the American trade deficit with China.

The agreement for the time being breaks a dead end that has brought a lot of trade between China and the United States to a standstill. Many American companies had suspended orders and hope that the two countries could complete a deal to reduce collective bargaining prices. Economists have warned that the trade dispute slow down global growth, create inflation of fuel and product lack and possibly divide the United States into recession.

“We tried to identify common interest,” Bessent said on Monday on CNBC. “We came a list of problems that we tried to solve and I think we did a good job.”

The finance minister blamed the Biden administration that he had not complied with his obligations to the trade agreement, which Mr. Trump achieved with China during his first term. He said that the agreement would be a starting point for the current round of the talks, which will probably continue a “fulsomatic agreement” in the coming weeks.

Chinese factories also recorded a severe decline in export orders to the USA and received additional pressure on a sluggish economy. The Chinese producers wanted to expand the trade to Southeast Asia and other regions to avoid the US tariffs.

Mr. Bessent said the tariffs had effectively created an embargo, which neither wanted to. The two countries stated that the ongoing negotiations from Bessent, Mr. Greer and He Lifeng, China's deputy premier for economic policy, will affect the weekend talks for the Chinese.

In a research note, Mark Williams, chief Asia economy for the capital economy that the agreement was “another significant withdrawal from the aggressive attitude of the Trump government”, since it does not include China's obligations for its currency or trade weight. He also noted that there is no guarantee that a 90-day armistice will give way to a permanent agreement, especially if the United States continues to try to gather other countries to limit the trade in China.

While a temporary explanation of the shockingly high tariffs represents the event for companies in both countries, the effects will linger. Companies will probably arise on a flood of pent-up demand, which leads to increasing transport prices, since companies are planning the programs during the 90-day negotiation window to use the lower tariff prices.

The global markets rose to the announcement. The benchmark index in Hong Kong rose by 3 percent, such as the same amount as the S&P 500 shares.

Zhiwei Zhang, the president and chief economist of Pinpoint Asset Management, an investment company in Hong Kong, described the agreement for both countries a “good starting point”.

“From China's point of view, the result of this meeting is a success, since China has taken a hard posture compared to the US threat from high tariffs and finally managed to significantly lower the tariffs without making concessions,” he said.

Mr. Bessent and Jamieson Greer, the commercial representative of the United States, said that the two countries in the US demands discussed in the United States that Beijing violated the trade of chemical ingredients for the production of fentanyl. Mr. Bessent said the Chinese understood “the size” of the fentanyl crisis in the United States and that there was a “positive way forward”.

Mr. Trump initially added a 20 percent tariff to Chinese exports and accused the country not to do enough to stop fentanyl flow to the USA. This punitive tariff remains. The 10 percent “basic lines” tariff on almost every US trade partner, including China, also remains.

Mr. Greer said that the negotiations were underlined by “mutual understanding and mutual respect”, but found that China was the only country that had been opposed to dozens of countries against the United States last month.

Last month, the Trump government announced a 90-day break for the mutual tariffs, which it had implemented with most trading partners with the exception of China. The White House drove races for trade agreements before expired in early July.

The Trump government has accused China of unjustly subsidizing the most important sectors of their economy and flooding the world with cheap goods. Mr. Trump said China has “demolished” the United States for decades with unfair trading practices, which have decimated the processing business in America and cost the jobs for land.

Wang Wen, Dean of the Chongyang Institute for Financial Sciences at Renmin University in Beijing, said that the agreement had shown the wish for both countries to avert the “worst case”. He said that China “better” in dealing with the pace and the style of the second Trump presidency is in comparison to how the first Trump term dealt.

When accepting the contract, Mr. Bessent and Mr. Greer made sure not to antagonize China. Instead, they stated most of the guilt for the trading war of the bidges administration and accused them of neglecting the level of trade.

Mr. Bessent suggested that the two countries could help each other by being able to reconcile their economies and said that America could restore production while China could scale overproduction in his processing business.

The two sides have moved in public in the past few weeks. The White House repeatedly said that it spoke to Chinese officials while Beijing denied that such talks took place.

Beijing initially took a hard line to Mr. Trump's punitive tariffs. Last month, Mao Ning, a high -ranking spokeswoman for the Chinese Foreign Ministry, posted a video of a speech on X that Mao Zedong kept during the Korean War – known in China to help us against aggression and support of Korea. He explained: “No matter how long this war will take, we will never give in.”

China carefully framed his participation in the Geneva negotiations as a license for Mr. Trump's tariffs, but as a necessary step to avoid further escalation. The Chinese Ministry of Commerce said that the agreement was “in the interests of both countries and the common interests of the world” and hoped that the United States “would continue to work with China to meet halfway”.

Since the tariffs were announced, China has taken many punitive measures against the United States. It started the imports of Sorghum, Poultry and Bonemeal from American companies and added 27 companies to the list of companies with trade restrictions.

Even when China agreed to re -work punitive measures that it raised last month, several Chinese authorities, including the Ministry of Commerce and the Security Ministry, met how the export control of strategic minerals can be strengthened.

In a statement, the European Chamber of Commerce in China said that it was “encouraged” by the announcement, but this “uncertainty remains” because the tariffs are only temporarily exposed.

President Jens Eskelund, President of the European Chamber, said it hopes that “both sides will continue to dialogue to solve differences, and to avoid taking measures that disturb global trade and lead to collateral damage for those who are captured in the crossfire.”

Before the discussions of the weekend discussion, Mr. Trump seemed to extend an olive branch by suggesting reducing the tariffs to 80 percent. On Saturday he wrote about Truth Social that the conversations were a breakthrough: “A total reset that was negotiated in a friendly but constructive manner.”

Nick Cumming-Bruce Reporting of Geneva contributed, Christopher Buckley From Taipei and Alan Rapport And Ana Swanson From Washington.