The United States and China will each slash duties on $30 billion of the other's imports under a "30-for-30" framework agreed at last week's Trump-Xi summit in Washington, with home textiles and cotton products squarely inside the covered basket.

The deal extends the existing Busan Agreement trade truce by two months, to Jan. 10, and pairs it with reciprocal tariff reductions across 1,619 Chinese tariff categories and 77 U.S. import categories of China-originating goods.

For softgoods supply chains, two lines matter most. China will cut tariffs on agricultural goods including certain cotton products, alongside dairy, meat, corn, wheat, fish and sorghum. The U.S. side will reduce duties on home textiles — bed linens, table linens and fabric bathroom products — plus a range of electronics.

Over 90 percent of the imports targeted by the action will now receive most-favored-nation tariff treatment, eliminating country-specific surcharges on those lines.

U.S. Trade Representative Ambassador Jamieson Greer confirmed the framework in a statement Sunday.

"As a direct result of the strong relationship between President Trump and President Xi, the United States and China, under the auspices of the new Board of Trade, have recommended $30 billion of trade in non-sensitive goods on each side that could benefit from more favorable tariff treatment in the future," Greer said.

"From agricultural products to medical devices, President Trump is unlocking improved market access for about 30 percent of U.S. exports to China, while benefiting consumers with imports from China of household goods, toys, and other products that the United States generally does not import from other countries," he added.

Greer said the administration will continue pursuing a broader, more durable agreement with China over the coming months through the previously established U.S.-China Board of Trade. Greer and Treasury Secretary Scott Bessent lead the American side; Chinese Vice Premier of the State Council He Lifeng leads the Chinese side.

Deputies to those principals will develop proposals covering both the current tariff reductions and "other potential arrangements for optimizing bilateral trade," according to the USTR. They will monitor the covered product list and may propose adjustments in the future, but neither side expects changes more often than once a year.

What it means for sourcing desks

The inclusion of bed linens, table linens and fabric bathroom products in the U.S. reduction list gives importers of China-origin home textiles a direct cost line to revisit. Sourcing teams holding China home-textile programs that were re-quoted or shifted during the tariff escalation should now re-run landed-cost comparisons before committing fall and spring 2026 orders.

The truce clock is short. The Busan extension runs only to Jan. 10, and the annual cadence for product-list adjustments means importers cannot count on mid-cycle expansions. Buyers hedging between China and alternative origins — Vietnam, India, Pakistan for home textiles — will want contract language that handles a tariff snapback if negotiations stall after the January deadline.

On the export side, U.S. cotton suppliers gain a Chinese tariff reduction on certain cotton products, a data point worth tracking for mill procurement teams pricing U.S. versus Brazilian and Australian growths into Chinese spinners.

Compliance teams should treat the MFN conversion as a traceable customs matter, not a press-release claim. Importers need to confirm which of their specific HTS lines fall within the 77 U.S. categories or the 1,619 Chinese categories before repricing, and monitor the Board of Trade deputies' product monitoring for any annual list revisions.

The sourcing decision the news forces: lock in the tariff benefit now, but build the January 10 expiry date into every China-origin home textile purchase commitment.