The United States and China have agreed to reduce tariffs on a range of consumer and agricultural products following this week’s meeting between President Donald Trump and Chinese President Xi Jinping, indicating a potential thaw in the trade war between the two countries.
According to Axios, the agreement covers $30 billion in “non-sensitive goods” and is part of a larger trade package reached during the Trump-Xi summit.
The White House said China will lower tariffs on certain agricultural products, seafood, wood products, cosmetics, and medical devices. In exchange, the United States will reduce tariffs on small appliances, toys, holiday decorations, and children’s car seats.
The tariff reductions could potentially lower prices on a variety of consumer goods for American shoppers, Axios reported.
The White House also announced that China will import 10 million metric tons of American coal in 2027 and another 10 million metric tons in 2028.
China was among the five largest importers of U.S. coal before sharply reducing its purchases in 2025 amid 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 its fact sheet.
The agreement follows a trade dispute that intensified in April 2025, when China’s state-run Global Times accused Trump of using tariffs to “blackmail” Beijing and pursue American interests. As Breitbart News reported, the publication defended China’s retaliatory measures and pointed to California Gov. Gavin Newsom’s intention to maintain international trade relationships despite the administration’s tariff policies.
China also faced several economic challenges during the trade dispute, including its dependence on exports, declining foreign investment, a prolonged real estate crisis, high youth unemployment, and financial pressures associated with its Belt and Road Initiative. The country lost approximately $168 billion in foreign investment in 2024; Beijing introduced a 20-point plan in February 2025 to stabilize foreign investment.
Beijing expanded its retaliatory trade measures in April 2025, placing 11 American drone manufacturers, including Skydio, on its Unreliable Entity List over alleged arms sales or military technology cooperation with Taiwan. The restrictions highlighted American manufacturers’ dependence on Chinese batteries, rare earth minerals, and other critical components, with Skydio CEO Adam Bry accusing Beijing of using supply chains as a weapon to advance Chinese interests over American interests.
As Breitbart News reported in July 2025, China’s economy grew by 5.2 percent in the second quarter, down from 5.4 percent in the first quarter, amid tariff pressures, weak consumer demand, and declining property values. Although growth exceeded analysts’ expectations, economists warned that China’s economic growth could weaken as advance export orders faded and the effects of U.S. tariffs became more visible. A Goldman Sachs report released in June 2025 estimated that Chinese home prices had fallen approximately 20 percent over the preceding four years and could decline another 10 percent before 2027.