During the eighth round of economic and trade consultations, held across four days from 20 to 23 September, negotiators from both countries reached agreement on product lists tied to the 30-billion-U.S.-dollar framework. Cuts to tariffs on both sides, denominated in US dollars, formed the basis of the exchange.
Tariffs on a range of goods arriving from China — among them toys, kitchen and bathroom products, home appliances, baby items, and holiday merchandise — are set to come down under plans announced by the United States. Order volumes from American buyers are climbing, sellers in China's factory and port cities say.
Gong Yongqiang has already begun laying the groundwork for the coming year, with the festival still over two months away. Moving across the shop floor, storage areas, and production space, the trader from Yiwu takes stock of incoming materials while putting together a new range of holiday decorations. Gong's store, stocked floor to shelf with Santa Claus figures spanning a range of designs and dimensions — the type destined to appear on American mantelpieces by winter — sits within Yiwu's vast wholesale district in Zhejiang Province.
Gong noted that the announcement prompted an immediate response, describing the development as a welcome indicator for trade activity on both sides. Harley Seyedin, who chairs the American Chamber of Commerce in South China, said the agreement conveys a clear message to markets and investors, giving businesses a firmer footing from which to commit capital, grow operations, and add employment across the Pacific, adding that predictability underpins commercial activity.
Luo Zhiheng, chief economist at Yuekai Securities, characterised the tariff reductions as a sign of warming relations between the two nations, while noting that their overall effect on the total duty burden facing Chinese goods headed to the United States remains limited. Tariff reductions on goods viewed as politically low-risk form one part of what analysts point to as a potential opening, along with indications about the direction trade policy may take going forward.
Shelves and walls throughout Nie Ziqin's 15-square-metre booth at the Yiwu International Trade Market are lined with Halloween merchandise — glowing spiders, pumpkin lanterns, and horror masks among them — and she noted that one item in particular had drawn the strongest sales so far this season. Displaying a light-up spider, she noted that a single buyer had placed an order running into the hundreds of thousands.
Production at her facility has been running at full capacity to meet cross-border e-commerce demand, with goods being dispatched to warehouses in the United States, and a number of her American buyers have expressed a positive outlook on trade between China and the United States. Nie noted that the arrangement should deliver advantages to both sides, adding that a mutually beneficial outcome was the shared goal — a view reflected in her own order books, where export volumes destined for the United States climbed 20 percent against the same period a year earlier across the first eight months of 2026, with buyers on the American side placing their orders ahead of the typical schedule.
Handling roughly four-fifths of worldwide demand for Christmas decorations and related goods, Yiwu dispatches over 20,000 product varieties to buyers across 178 countries and regions annually. Trade and commercial activity with the United States continues to hold a notable place in the city's economic outlook. Outbound shipments from the city to the United States totalled 104.51 billion yuan — equivalent to roughly 15.55 billion U.S. dollars — across 2025, a figure that represented a 25.1 percent climb against the prior year's tally.
Producers of toys and gift items operating out of Chenghai District — a hub in Shantou, Guangdong Province, long associated with toy manufacturing — are reporting shifts in both the volume of incoming orders and the dynamics of price discussions with buyers. Covering a land area under 400 square kilometres, the Chenghai district generates more than half of all plastic toys manufactured domestically and roughly a third of the world's total supply. A speaker at a recent event noted that reduced tariff rates lower purchasing costs for buyers, opening up room for negotiation on both sides of a trade deal.
Guo Bo, who oversees operations at Guangdong YiYu Craft & Hardware Electrical Factory Co., Ltd. — a manufacturer of decorative holiday figures including plush Santas, snowmen, and reindeer — noted that reaching agreement on pricing had grown more straightforward than before. Order volumes are projected by Guo to climb somewhere between 10 and 20 percent over the course of the current year.
Qiu Zhihong, who chairs Shantou Dave Plastic Toys Co., Ltd., noted that conditions had turned around in the period leading up to the conversation. Products carrying the Disney and Universal Studios brand names move through his production facilities on their way to market, with roughly 30 to 40 percent of the company's outbound shipments destined for buyers in the United States. According to Qiu, one buyer in the United States raised its container volume from 100 units to 120 on its latest order.
Businesses that weathered the prior year's tariff increases have drawn some support from a pickup in domestic demand, though that factor represents one strand within a wider economic context. Adapting to unpredictable trade conditions, exporters have turned to untapped buyer pools abroad and the reinvention of long-established goods to keep business moving.
Gong Yongqiang, operating out of Yiwu, has spread his commercial exposure across multiple markets rather than concentrating on just one. His portion of revenue tied to the U.S. market dropped from roughly one-quarter at its highest point down to about 10 percent once the tariff increases took hold. Demand from Brazil, Colombia, and Chile absorbed the shortfall, stretching his network of buyers across more than 30 countries and regions.
Product development work has taken on a new dimension for Gong, with fresh designs now taking shape under his direction. Across this year, Gong has put forward a collection of more than 100 newly developed designs, weaving sound and movement into holiday figurines that had previously depended on static presentation. According to him, adding those kinds of features tends to push profit margins up by more than ten percentage points. A voice-enabled Christmas doll capable of back-and-forth dialogue is among the products he is bringing to market, with a release date set for the coming year.
Qiu Zhihong has adopted a comparable approach at his Chenghai operation. Demand for touch-responsive AI toys has outpaced sales of standard models, a shift that has led the company to channel resources into more advanced products and build out its brand portfolio. Direct retailer partnerships have become part of the approach, removing the need for intermediaries in the supply chain.
Tao Yang, a trader based in Yiwu, landed a purchase agreement covering more than 2,000 embroidered denim jackets from a buyer in the United States, noting that when the buyer visited Yiwu that September, AI-assisted design tools were used alongside in-person consultations to refine every detail of the order. Tao explained that addressing those requirements was what ultimately allowed the agreement to move forward. According to Tao, the flexibility driving these outcomes draws on Yiwu's well-developed supply and industrial networks, paired with a close read of market conditions, allowing new product designs to move quickly into large-scale manufacturing.
According to Luo Zhiheng, the ability of Chinese exporters to hold their ground going forward hinges on spreading into new markets, advancing their technology, cultivating recognisable brands, and deepening their footprint abroad.