US Lowers Tariffs on Chinese-Made Toys – A Major Opportunity for Toy Exporters

The US will reduce tariffs on approximately $30 billion worth of Chinese imports including toys, home appliances, baby products, and holiday gifts, with over 90% of products enjoying Most Favored Nation (MFN) tariff treatment.

On September 28, China's Ministry of Commerce announced details regarding the China-US Trade Council and the "$30 billion vs. $30 billion" reciprocal tariff reduction framework. Under this agreement, the United States will lower tariffs on approximately $30 billion worth of Chinese imports, including toys, home appliances, baby care products, kitchen and bathroom items, and holiday gifts. In return, China will reduce tariffs on approximately $30 billion worth of US imports, including agricultural products, personal care goods, medical devices, and coal.

Background of the Agreement

In May 2026, the leaders of China and the United States met in Beijing and agreed to establish an intergovernmental trade council. From September 20–23, the two sides held the eighth round of economic and trade consultations in New York and Washington, reaching consensus on the Trade Council's working procedures, the responsibilities of the "$30 billion vs. $30 billion" reciprocal tariff reduction framework, and the product lists.

Under the working procedures, the Trade Council's mission is to optimize bilateral trade and discuss arrangements that affect trade. Both sides believe the council will provide an important platform and mechanism to expand cooperation and address trade issues between the two countries.

What This Means for Toy Exporters

Both sides agreed to provide reciprocal tariff treatment for approximately $30 billion each in imports (based on 2024 bilateral trade volumes), subject to their respective domestic laws and procedures. More than 90% of the products on the list will be exempt from all mutually imposed additional tariffs and will enjoy Most Favored Nation (MFN) tariff treatment.

The US side will lower tariffs on toys, home appliances, baby products, kitchen and bathroom items, and holiday gifts imported from China. This is particularly significant for toy manufacturers and exporters based in Chenghai, Shantou – one of China's largest toy production hubs.

For international buyers sourcing toys from China, this means:

• Lower landed costs on toy imports
• Reduced price pressure on retail and wholesale buyers
• Greater variety of products available at competitive prices
• Stabilized supply chains for the US market

Looking Ahead

Both sides will synchronize the tariff reductions after completing their respective domestic legal procedures. The agreement is expected to stabilize China-US trade and create favorable conditions for Chinese product exports to the US market.

The two sides also agreed to establish an agriculture working group under the Trade Council to discuss regulatory and market access issues. The working group plans to hold its first meeting before the end of 2026.

Source: Ministry of Commerce of the People's Republic of China