Geneva, Switzerland - The United States and China agreed to significantly reduce tariffs on each other's goods weeks ago, after negotiators from both countries met on weekends to hold trade talks in Switzerland, adding to another dramatic shift in the dispute that has stirred up financial markets and shocked the global economy in recent weeks.

In the first 90 days, the U.S. imposes on Chinese goods from at least 145% to 30% of China, while the Chinese levy will drop from at least 125% of U.S. goods to 10%.

The negotiations were led by Deputy Prime Minister in China, with Trade Representative Jamieson Greer and Treasury Secretary Scott Bessent on the U.S. side.

"We concluded that we shared interest and that we were both interested in balancing trade," Bessent said in a press conference on Monday. Greer also said there was a "positive avenue" in countries that were committed to addressing fentanyl smuggling.

The new U.S. tariff levels reflect the basic 10% tariff, except for the total 20% import tax imposed on Beijing earlier this year by President Trump earlier this year, as the U.S. is talking about fentanyl-related chemicals.

"China has been achieving win-win results in its trade and economic negotiations, so there will certainly be any possible agreement in China's own development interests," said Lee Changgang, a diplomat at China's Ministry of Commerce.

After the negotiations, the delegation praised each other.

At a press conference after the meeting, the vice premier described the atmosphere of the meeting as “frank, in-depth and constructive”, saying it had made “substantive progress and important consensus.”

Greer said China "started trading this week" citing rapid progress between the two countries, which also agreed to establish an advisory mechanism to continue to address future trade issues.

"Both sides want to decouple. We do want trade, we want a more balanced trade, and I think both sides are committed to achieving that."

Previously striking tariff rates throughout April, both sides effectively paralyzed trade between the world’s two largest economies and shocked U.S. consumers and small businesses who suddenly saw orders in China at more than double the price. Although importers welcomed a temporary tariff drop, if talks between the two countries were sore, it could be pulled.

"While this decision encourages the chamber of commerce, uncertainty remains," said Jens Eskelund, president of the European Chamber of Commerce in China. "Businesses need predictability to maintain normal operations and make investment decisions."

The United States said it is now negotiating that China will buy more U.S. goods, which is a reward for the Trump administration's trade deal negotiated with China during another trade war in 2020. However, China ultimately did not buy the additional US $200 billion of goods, and the US said they would.

According to the joint statement of the two sides, future talks will be held in China, the United States or third countries.

"Are we going to rebalance the fundamental nature of the global economy, China is a huge manufacturing center and the United States is a consumer economy? No, I don't think so." "But there are things that both sides can do to each other that make both sides happy, at least a little bit?"

Aowen CAO contributed from Beijing.