China will open to U.S. business, pause trade barriers

President Donald Trump said Monday that China “agreed to open up” after the two countries announced they would temporarily slash most of the tariffs on each other’s goods.

Trump offered few details about that development, but said it was “maybe the most important thing” to come out of the high-level trade talks between the two superpowers in Geneva, Switzerland, over the weekend.

Trump indicated that those purported commitments have not been cemented yet.

“We have to get it papered,” he said at the White House before signing an executive order on U.S. drug prices. “But they’ve agreed to open up China.”

Trump’s remarks came hours after U.S. and Chinese officials said they struck an agreement to pause most tariffs and other trade barriers for 90 days.

The U.S. agreed to temporarily reduce tariffs on China to 30%, down from 145%. Beijing said it will lower tariffs on U.S. goods to 10% from 125%.

Trump said Monday morning that tariffs on China would not go back to 145%, even if a longer-term deal cannot be reached once the 90-day pause expires.

“But they would go up substantially,” Trump added.

The U.S. side of the temporary agreement shrinks Trump’s “reciprocal” tariffs on China to 10%. The U.S. is also maintaining 20% tariffs that were previously imposed over allegations about China’s role in bringing fentanyl to America.

The U.S. said it will additionally retain tariffs that were in place for specific Chinese products, including steel and aluminum, before early April.

China will also “suspend or remove the non-tariff countermeasures” it has imposed on the U.S. since April 2, according to the White House.

The duties that Trump slapped on China in April effectively established a trade embargo with one of America’s largest suppliers of goods.

The agreement to temporarily suspend tariffs is set to begin Wednesday.

The Chinese Embassy in the U.S. did not immediately respond to CNBC’s request for comment on Trump’s remarks.