The United States and China have agreed to lower tariffs on a range of consumer and agricultural goods following this week’s meeting between President Donald Trump and Chinese President Xi Jinping, a sign the two countries may be easing their long-running trade dispute.
According to Axios, the agreement covers $30 billion in what officials called “non-sensitive goods” and forms part of a broader trade package reached at the summit.
Under the deal, China will reduce tariffs on certain agricultural products, seafood, wood products, cosmetics and medical devices, the White House said. In return, the U.S. will cut tariffs on small appliances, toys, holiday decorations and children’s car seats.
Axios reported the reductions could lower prices for American shoppers on a variety of consumer goods.
The White House also said China has committed to importing 10 million metric tons of American coal in 2027 and another 10 million metric tons in 2028. China had been one of the five largest buyers of U.S. coal before sharply cutting purchases in 2025 during the trade dispute.
“The United States and China continue to work on U.S. concerns regarding supply chain shortages related to rare earths and other critical minerals, with the goal of ensuring shipment levels return to appropriate levels,” the White House said in a fact sheet on the agreement.
How the dispute unfolded
The trade fight intensified in April 2025, when China’s state-run Global Times accused Trump of using tariffs to “blackmail” Beijing in pursuit of American interests. The outlet defended China’s retaliatory measures at the time and noted California Gov. Gavin Newsom’s stated intention to maintain international trade relationships despite the administration’s tariff policy.
China faced a string of economic pressures during the standoff, including heavy reliance on exports, falling foreign investment, a prolonged real estate slump, high youth unemployment and financial strain tied to its Belt and Road Initiative. The country lost roughly $168 billion in foreign investment in 2024, prompting Beijing to roll out a 20-point plan in February 2025 aimed at stabilizing investment.
In April 2025, Beijing expanded its retaliatory measures by placing 11 American drone manufacturers, including Skydio, on its Unreliable Entity List over alleged arms sales or military cooperation with Taiwan. The move exposed how dependent American manufacturers are on Chinese batteries, rare earth minerals and other components. Skydio CEO Adam Bry accused Beijing of using supply chains as a weapon to advance Chinese interests over American ones.
China’s economy grew 5.2 percent in the second quarter of 2025, down from 5.4 percent in the first quarter, amid tariff pressure, soft consumer demand and falling property values. While the growth figure beat analysts’ expectations, economists cautioned that momentum could fade as advance export orders dried up and tariff effects became more visible. A Goldman Sachs report from June 2025 estimated Chinese home prices had fallen about 20 percent over the prior four years and could drop another 10 percent before 2027.
