After seriously ramping up their tariff battle a few weeks ago and then not talking for a while, the United States and China say they’ve reached a deal to roll back most of their tariffs.

They’re also calling a 90-day truce in their trade war, so they can hold even more talks.

The U.S. agreed to drop its 145% tariff rate on Chinese goods to 30% and China agreed to lower its 125% rate on American goods to 10%.

News of the deal resulted in the Canadian and American stock markets rallying on Monday with the T-S-X Composite Index rising 174.44 points to 25,532.18; the Dow Jones industrial average up 1,160.72 points to 42,410.10; the S&P 500 Index rising 184.28 points to 5,844.19; and the Nasdaq Composite up 779.43 points to 18,708.34.

U-S Treasury Secretary Scott Bessent made the announcement, at a news conference in Geneva, Switzerland, as he says the U.S. wants more access to the Chinese market.

“We would like to see China open to more U.S. goods. We expect that as the negotiations proceed there will also be a possibility of purchase agreements to pull what is our largest bi-lateral trade deficit into balance, that has gotten out of balance.” Bessent said.

U.S. Trade Representative Jamieson Greer, who was also part of the announcement, says other U.S. tariff measures on China from 2018 or since remain “unchanged for now.”

The two American officials said the high tariffs were the equivalent of a trade embargo and that wasn’t something they wanted.

Economists agree it’s a positive move but say there’s no guarantee the so-called truce is going to last.

(With files from Cheryl Brooks, CFCW Edmonton)