Source: Supply Chain Dive 
Date: 28th September 2026 

Selected consumer goods, agricultural products and medical equipment could receive lower tariffs under a new bilateral framework, potentially changing landed-cost calculations for importers and exporters.

The United States and China have taken another step toward easing trade barriers, identifying approximately $60 billion in bilateral trade that could qualify for reduced tariff treatment.

The U.S.–China Board of Trade has recommended approximately $30 billion of goods in each direction for more favourable tariff treatment, following the recent extension of the broader U.S.–China trade truce.

However, the announcement does not mean tariffs have already been reduced. The final duty reductions and implementation dates remain to be determined, and both countries must complete their respective domestic legal processes before any changes take effect.

Consumer goods and agriculture among products covered. For goods entering the United States from China, the proposed framework covers a range of largely non-sensitive consumer products, including toys, small household appliances, tableware, blankets, bed linen and children’s products.

For U.S. exports to China, the proposed list includes agricultural products, seafood, wood products, cosmetics and medical devices. U.S. trade officials say the products under consideration represent approximately 30% of U.S. exports to China.

The development follows the recent agreement to extend the existing U.S.–China trade truce until January 10, 2027, giving negotiations more time and reducing the immediate risk of renewed trade escalation.

The new tariff framework now moves the relationship beyond simply maintaining existing conditions toward identifying specific areas where trade barriers could potentially be reduced.

What This Means

• For companies sourcing affected products from China or exporting qualifying U.S. goods, lower tariffs could eventually change total landed costs and sourcing calculations.
• However, businesses should not incorporate lower tariff rates into their costing yet.
• No final tariff reductions or implementation dates have been announced. Existing duties therefore remain applicable until the relevant authorities formally implement any changes.
• Once details are confirmed, companies should review affected product classifications, existing supplier arrangements and landed-cost models to determine whether the new tariff treatment changes the economics of current sourcing strategies.

The development illustrates why sourcing strategies need to remain flexible.

Over the past several years, changing tariffs have encouraged companies to diversify production, reconsider China+1 strategies and develop alternative supplier networks. Potential tariff reductions on selected Chinese goods introduce another variable into those decisions.

A sourcing location that became less competitive because of higher duties could look different if those duties fall.

But tariffs remain only one component of the equation. Manufacturing cost, supplier capability, transportation, lead times, inventory requirements and supply-chain resilience all contribute to the true landed cost of a product.

For importers and exporters, the immediate priority is therefore to monitor the final tariff rates and implementation dates rather than change sourcing decisions prematurely.

The direction of U.S.–China trade policy may be shifting, but the next important step will be seeing exactly which tariff reductions become effective — and when.