Archive · 28 Sep 2026
US-China Tariff Cuts Target $30 Billion in Selected Goods
The United States and China agreed to charge lower taxes on some goods traded between them.
Each country selected products worth about $30 billion.
China chose many American goods, including farm products, timber and medical equipment.
The United States chose some Chinese household goods, toys and other products.
Lower tariffs could make it cheaper for businesses to sell or buy these items.
The deal does not include important products such as computer chips, electric vehicles and batteries.
This means many major disagreements between the countries are still unresolved.
The countries also agreed to keep their wider trade truce in place until January 2027.
The United States and China agreed to lower tariffs on selected goods worth about $30 billion from each side.
China’s list covers 1,619 categories, including agricultural products, timber, medical equipment, personal-care goods and coal.
The United States will reduce duties on 77 categories of Chinese products, including tableware, glass goods, fireworks and soccer balls.
China said tariffs on more than 90% of the products on its list would move largely to most-favoured-nation levels.
Semiconductors, electric vehicles and batteries remain outside the deal, while the broader trade truce was extended until January 2027.
- Who
- The United States and China, including their governments and trade authorities.
- What
- They agreed to cut tariffs on selected product categories worth about $30 billion from each side.
- When
- The product lists were released on Monday, after Xi Jinping met Donald Trump in Washington; the broader trade truce was extended until January 2027.
- Where
- The agreement concerns trade between the United States and China.
- Why
- The countries are trying to ease tariff tensions and support trade while leaving sensitive strategic products outside the agreement.
Potential Trade Benefits
Remaining Trade Concerns
Effect on bilateral trade
Potential Trade Benefits
Lower duties could reduce costs for US importers and benefit US farmers and manufacturers selling in China; economists said the agreement could increase trade in affected categories.
Remaining Trade Concerns
The agreement covers only selected, less-sensitive goods and does not remove the broader trade barriers between the countries.
Scope of the agreement
Potential Trade Benefits
The deal provides another step toward easing tensions and supports trade during the extended truce.
Remaining Trade Concerns
Semiconductors, electric vehicles and batteries remain excluded, and the United States is investigating China and 15 other trading partners over excess industrial capacity.
Trade imbalance
Potential Trade Benefits
The agreement is relatively significant compared with US exports to China, which were about $68 billion in the first seven months of the year.
Remaining Trade Concerns
Chinese exports to the United States were about $270 billion in the first eight months, while China’s trade surplus remains a concern.
- Deal value
- About $30 billion in selected goods from each side
- China’s list
- 1,619 categories of US goods
- US list
- 77 categories of Chinese goods
- China’s tariff change
- More than 90% of listed products are expected to move to most-favoured-nation levels
- Included Chinese goods
- Tableware, glass products, wooden Christmas ornaments, fireworks and soccer balls
- Excluded products
- Semiconductors, electric vehicles and batteries
- Trade truce
- Extended until January 2027