Will new US-China temporary tariff deal make a difference for your bottom line?

PHILADELPHIA (WPVI) -- After months of back and forth, the United States and China have agreed to drop their tariffs by 115%, but what does it mean for your bottom line?

Even experts are having a hard time answering that question.

"This has been the most dramatic environment that I have seen in my 32 years of teaching and following the markets," said Drexel University finance professor Ed Nelling.

MORE | US and China announce agreement to cut reciprocal tariffs for 90 days

The modern-day tariff wars are like nothing he's seen in a textbook. The U.S. and China both spiked and now dropped tariffs on goods from each other's countries.

Previously, President Donald Trump put a 145% tariff hike on Chinese goods. China retaliated with a 125% tariff on U.S. goods. Now, those numbers have dropped to a 30% tariff on Chinese goods and 10% on U.S. goods.

We asked St. Joseph's University economics professor, Nancy Ruth Fox, if the lower tariff numbers were a win for the United States.

"I don't know if I'd use the term win because the problem is one we created ourselves," she said.

Fox says while the numbers are better, tariffs can still lead to higher prices if companies pass the cost on to consumers.

"Economists do not like tariffs. We like trade. The reason we like trade is because we like stuff that's cheaper," said Fox.

Nelling thinks some purchases are less likely to be impacted by tariffs.

"In most cases, groceries won't be a problem," he said.

Bigger purchases, like cars and electronics, might see price hikes, though.

The US and China released a joint statement about the temporary tariff agreement, which will last 90 days.

"We don't know what's to come," said Fox. "This is a temporary agreement for 90 days, bringing down something that was too high to begin with."

President Trump, though, is optimistic about relations with China.

"They were happy to be able to do something with us. And the relationship is very, very good," he said on Monday.

In the meantime, experts like Nelling continue to watch the impact of quickly changing tariffs.

"All of this general uncertainty makes people nervous," he said.

The temporary tariff drop comes at an important time. Many companies are placing their inventory orders from China right now under the lower tariff agreement.

Experts say we'll have to wait and see if that helps stabilize prices on gifts during the holidays.