Rancher Curtis Schroder, 57, and his son Derek lead heifers toward a transport truck on the Schroder family ranch in Walsh, Colorado on May 9, 2026.
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BEIJING — The U.S. and China are planning to reduce tariffs on $30 billion worth of goods from each country, according to government announcements from both sides Monday.
The detailed lists includes mostly imports of toys, sports equipment and Christmas decorations by the U.S., while American agricultural products accounted for much of the far longer list of imports by China.
Washington has sought to reduce its record trade deficit with Beijing, as the Asian country exports far more to the U.S. than it imports. U.S. goods trade deficit with China was more than $202 billion last year.
“If we see the tariff cuts actually implemented before the holiday season, it could provide a welcome boost to U.S. consumption and to retailers,” said Jacob Cooke, CEO at WPIC.
Cooke, whose company primarily helps U.S. brands sell in China, said that Beijing’s import list includes fast-growing categories such as hair care and packaged pet food, where Chinese brands are highly competitive against U.S. offerings. “Every percentage point counts for price competitiveness and preserving margin.”
However, it was not immediately clear when lower tariffs would take effect, and by how much the duties would go down. The U.S. and China last year slapped import tariffs effectively of over 40% and more than 30%, respectively, on each other.
The two countries limited further tariff increases after a one-year truce reached last fall. Last week, U.S. Treasury Secretary Scott Bessent said negotiators agreed to extend that truce to January.
Monday’s announcement followed U.S. President Donald Trump’s summit with Chinese President Xi Jinping in Washington, D.C., last week. The two sides said the highly anticipated U.S.-China “Board of Trade” would consist of officials from both governments, and would meet at least once a quarter, with the top officials meeting “whenever necessary.”
Lower tariffs could substantially boost trade, especially for highly competitive Chinese companies. Home goods seller Ryan Zhao, director of Jiangsu Green Willow Textile, expects sales in the second half of the year to grow by 30% from a year ago if tariff cuts are implemented.
Here’s a select list of products set to benefit:
U.S. imports of Chinese goods (total items: 77)
Fireworks
Plates, cups, bowls, serving dishes
Tableware and kitchenware
Beads
Blankets (including electric ones) and rugs
Bed linen
Table linen
Curtains
Garden umbrellas
Artificial flowers
Shavers
Flashlights
Microwave ovens
Christmas-tree lamps and ornaments
Highchairs
Children play yards
Sleeping bags
Pillows
Toys (including tricycles, but excluding items that connect to WiFi or Bluetooth)
Billiards balls, chalk and tables
Playing cards
Rackets for games, other than for “lawn-tennis or badminton”
Soccer balls, baseballs, softballs, lawn-tennis balls
Fish hooks and fishing line
Artists’ brushers
Vacuum flasks
Chinese imports of U.S. goods (total items: 1,619)
Horses, donkeys, cattle, pigs, sheep, goats, chickens for breeding
Other livestock
Bees
Frozen pork
Frozen lamb
Frozen, fresh or chilled whole chickens or turkeys
Frozen chicken feet
Rabbit meat, excluding rabbit heads
Dried, smoked or salted beef
Live freshwater ornamental fish
Fresh or chilled tuna
Frozen Atlantic salmon
Buttermilk
Roasted peanuts
Peanut butter
Tomato juice
Ice cream and other frozen products
Fresh apples
Whiskey
Soybeans for seed
Soybean flour and meal
—CNBC’s Matthew Tan contributed to this report.