The US and China are finally seeing a thaw in tariffs. The announcement comes from Geneva, where negotiations are underway at the home of the Swiss ambassador to the United Nations. According to a joint statement by Washington and Beijing, their governments will suspend most tariffs starting Wednesday, May 14, for a period of 90 days.

While China will review its “additional tariffs” on US imports, both sides are committed to reducing their mutual punitive tariffs by 115%. Under the agreement, the US would reduce tariffs on Chinese imports from 145% to 30%, while China would reduce tariffs on US imports from 125% to 10%. Specifically, the US 20% tariff on Chinese imports related to fentanyl will remain in place, meaning total tariffs on China will remain at 30%.

The announcement of the Sino-American agreement on tariffs has given European stock markets a boost: Milan is up over 2%, Paris is up 1.25% and Frankfurt is up 1.57%. London is up 0.62%. In the United States, Nasdaq futures are up 3.6%, with S&P 500 futures up 2.8% and the Dow Jones up almost 1,000 points, or 2.3%. The Ice US Dollar index has also risen sharply. The index, which measures the US dollar against a basket of global currencies, is up 1.3% at 101.63.