The United States and China have agreed to lower tariffs on $30 billion worth of goods traded between the two countries, following a three-day summit in Washington, D.C. between President Donald Trump and Chinese President Xi Jinping.
According to the White House, the reciprocal tariff cuts apply to what officials described as “non-sensitive goods.” On the U.S. side, exports such as agricultural products, fish and seafood, logs and wood products, cosmetics and medical devices will receive favorable treatment when entering China. In return, U.S. imports of Chinese-made small appliances, toys, holiday decorations and children’s car seats will get preferential tariff status.
The agreement was worked out through the newly formed U.S.-China Board of Trade, an idea first floated during Trump’s visit to China in May and formally established this week during Xi’s trip to Washington.
U.S. Trade Representative Jamieson Greer told CNBC on Friday that “a lot more details” about the agreement would be released on Monday. He said the terms were the product of weeks of negotiation, though neither government has yet published the final tariff rates or a complete list of products that will qualify for the new treatment.
A Long Road From 145% Tariffs
The deal marks one of the most notable de-escalations in a trade war that began in February 2025, when Trump imposed a 10% tariff on all Chinese imports, citing Beijing’s alleged role in the fentanyl crisis and illegal immigration. China responded with its own levies on U.S. coal, liquefied natural gas, crude oil and cars.
Tensions escalated sharply from there. By April 2025, following Trump’s “Liberation Day” reciprocal tariff announcement, U.S. tariffs on Chinese goods had climbed to 145%, while China’s tariffs on U.S. goods reached as high as 125%.
Negotiators from both countries met in Geneva in May 2025 and struck a 90-day truce that brought U.S. tariffs down to 30% and China’s down to 10%. That truce was extended for another 90 days in August.
A further tentative agreement followed talks between Trump and Xi in South Korea in October 2025, under which China agreed to crack down on fentanyl precursor chemicals, resume purchases of U.S. soybeans and ease restrictions on rare-earth exports, while the U.S. agreed to additional tariff relief.
The two countries are expected to keep using the new Board of Trade to negotiate further tariff reductions and resolve other trade disputes, leaving the door open to broader agreements in the coming months.
