After months of escalating tariff pressure, both countries have moved toward partial de-escalation — the U.S. cut back on some import duties and extended tariff waivers, while China lifted many retaliatory tariffs and agreed to resume significant purchases of U.S. goods.

For major industries — agriculture, manufacturing, technology, raw materials — the tariffs and countermeasures had disrupted supply chains, global sourcing, and raised costs. This recent agreement aims to thaw some of that tension by restoring trade flow, especially for U.S. agriculture exports.

China’s cabinet said it would also suspend for one year the 24% additional tariffs it imposed on U.S. goods in April.