US and China Agree to Cut Tariffs on $60 Billion of Goods

Following the second Trump-Xi summit last week, the two countries detailed a plan to cut tariffs on about $60 billion of goods combined, split evenly: $30 billion of Chinese exports to the US and $30 billion of US exports to China. The White House calls it a '30-for-30' framework, built on recommendations from the US-China Board of Trade.

On the US side, the relief mainly covers Chinese toys, kitchenware, small appliances, and other household goods. On the China side, it covers US agricultural products, including corn, wheat, sorghum, meat, dairy, and vegetable oils and meals, notably not soybeans, plus a commitment to import 10 million metric tons of US coal a year in 2027 and 2028.

No. The underlying tariff truce, 30% on Chinese goods and 10% on US goods, stays in place; this is a $60 billion carve-out on top of it, not a replacement. That baseline truce has already been extended several times since May 2025 and now runs through January 2027.

It's a concrete, dollar-figure sign that both sides are still willing to de-escalate rather than only add tariffs, which matters given how often trade policy has swung the other way over the past year. US Trade Representative Jamieson Greer also said the US-China goods trade deficit has fallen about 40% since Trump took office, on track to hit roughly $140 billion in 2026, down from about $295 billion in 2024.

Chinese equity funds and US agricultural and commodity funds are the most direct plays on the specific goods named in the deal. Broader hedges like low-volatility equity, gold, cash, and a long-dollar position are reasonable ways to stay balanced given the underlying truce is still just an extension, not a permanent resolution.