The US and China have reached a historic agreement to mutually reduce tariffs on goods with a combined value of approximately 30 billion dollar. This agreement, concluded at a summit attended by the leaders of both nations—Donald Trump and Xi Jinping—marks a significant step for the global economy.
According to a list released by the White House, the Chinese goods slated for tariff reductions include fireworks, household items, sports equipment, and toys. Meanwhile, the list of American goods to be exported to China includes agricultural products, fish and seafood, raw timber, cosmetics, and medical supplies.
As reported by China’s Ministry of Commerce, the tariff reductions will take effect once the necessary domestic legal procedures are fully completed; under the agreement, tariffs on approximately 90 percent of the specified goods will be lowered to “most-favored-nation” levels. Furthermore, the parties reached a mutual agreement to establish a joint trade council and a special working group to address issues related to bringing agricultural products to market, as well as to hold regular consultations on investment barriers. At the same time, the parties announced the commencement of discussions regarding artificial intelligence, along with the associated risks and opportunities.
It is worth noting that trade relations between the two countries had previously been characterized by significant increases in customs tariffs. By April 2025, US tariffs on Chinese goods had reached 145 percent, while China’s retaliatory tariffs on American products had risen to 125 percent. Subsequently, in May, the parties reached a 90-day trade agreement and implemented a phased reduction of tariffs to 30 percent for the US and 10 percent for China.
