The United States and China have agreed to lower tariffs on $30 billion worth of goods. This deal comes after a three-day summit in Washington, D.C. President Donald Trump and President Xi Jinping met face to face. They worked out the terms over coffee and closed-door talks. The White House confirmed the agreement on Friday. It applies to what they call non-sensitive goods. This is a major shift from the high tensions of recent months.

You can picture the money moving differently now. American farmers will sell more crops. China will buy U.S. agricultural products. Fish and seafood exports will also see favorable treatment. Logs and wood products get a pass too. Cosmetics and medical devices are on the list. These items will face lower taxes when they cross the border.

American families will see changes on their shelves too. Imports from China will cost less. Small appliances are included in the deal. Toys and holiday decorations will be cheaper. Children's car seats also receive preferential treatment. This means lower prices for everyday items. The savings add up for households across the country.

This agreement marks a significant cooldown in the trade war. Trump launched the initial tariffs in February 2025. He placed a 10% tax on all Chinese imports. He cited fentanyl and immigration as reasons. China hit back with its own levies. They taxed U.S. coal and oil. The taxes kept rising on both sides.

By April 2025, the rates were staggering. U.S. tariffs on Chinese goods hit 145%. China responded with tariffs up to 125%. That is a tax on top of the price. It makes buying foreign goods very expensive. Negotiators met in Geneva in May 2025. They agreed to a 90-day truce. That lowered U.S. tariffs to 30%. China dropped theirs to 10%. The truce was extended again in August.

A tentative deal was reached in South Korea in October. China agreed to crack down on fentanyl precursors. They also resumed buying U.S. soybeans. Restrictions on rare-earth exports were eased. The United States agreed to ease tariffs further.

The new structure for these talks is the U.S.-China Board of Trade. This body was proposed during Trump's visit to China in May. It was formally established during Xi's visit this week. U.S. Trade Representative Jamieson Greer spoke to CNBC. He said more details will be released on Monday. The final tariff rates are not yet public. The full list of products is not out either.

Both sides spent weeks hammering out the terms. The Board of Trade will handle future negotiations. They will work on additional tariff reductions. Other trade disputes will be settled here too. This leaves the door open for broader agreements. The path forward is clearer than it was in April. The heat is off for now.