US and China Agree to Lower Tariffs on $30 Billion in Goods
Reciprocal tariff reductions apply to non-sensitive goods, including agricultural products and small appliances, following a summit between Presidents Trump and Xi.
The United States and China have agreed to reduce tariffs on $30 billion worth of goods traded between the two nations, the White House announced. The agreement was reached following a three-day summit in Washington, D.C., between President Donald Trump and Chinese President Xi Jinping.
The reciprocal tariff reductions will apply to "non-sensitive goods." U.S. exports such as agricultural products, fish and seafood, logs and wood products, cosmetics, and medical devices will receive more favorable tariff treatment in China. Conversely, U.S. imports of Chinese-made small appliances, toys, holiday decorations, and children's car seats will also benefit from preferential treatment.
The agreement was formalized through the U.S.-China Board of Trade, an entity initially proposed during President Trump's visit to China in May and formally established during President Xi's recent visit to Washington.
U.S. Trade Representative Jamieson Greer indicated that further details about the new trade agreement would be released soon. Greer stated that the tariff terms were finalized after weeks of negotiations, though neither country has yet published the complete list of products or final tariff rates.
This development marks a significant de-escalation in the trade dispute that began in February 2025, when President Trump imposed tariffs on Chinese goods, citing concerns over the fentanyl crisis and illegal immigration. China retaliated with tariffs on various U.S. exports, including coal, liquefied natural gas, crude oil, and automobiles.
At their height, U.S. tariffs on Chinese goods reached approximately 145%, with China implementing retaliatory tariffs of up to 125%. Previous negotiations in Geneva in May 2025 resulted in a 90-day truce that lowered U.S. tariffs to 30% and Chinese tariffs to 10%. This truce was subsequently extended for an additional 90 days in August.
Earlier agreements between the two nations included China's commitment to addressing fentanyl precursors and resuming soybean purchases, while the U.S. agreed to ease tariffs. The newly established Board of Trade is intended to facilitate ongoing negotiations on additional tariff reductions and other trade matters, potentially paving the way for broader agreements.