In May 2026, the U.S. and China reached a deal that electrified the foreign trade community: both sides agreed to reciprocally reduce tariffs on approximately $30 billion worth of products from each side.
Many small food exporters' first reaction is: $30 billion—sounds huge. But what does it have to do with me? My annual export volume is only a few million RMB. Will this policy actually benefit me?
Yes, it will. And the connection may be bigger than you think.
Anyone who has exported to the U.S. in recent years knows that tariffs have been layered on multiple times. But the most confusing—and most damaging—was the "reciprocal tariff" imposed in April 2025, which went as high as 125% on Chinese goods.
In November 2025, the U.S. exempted 237 agricultural product categories, including chili powder, from reciprocal tariffs. Gansu chili powder exports promptly surged 6x.
Now this $30 billion reciprocal tariff reduction framework is set to expand that "exemption" to even more categories.
The Ministry of Commerce explicitly named several: dairy, seafood, vegetables, and fruits. These are products where China has export strengths and the U.S. has demand.
The Ministry of Commerce stated: Chinese dairy, seafood, vegetables, fruits, and other specialty agricultural products have significant potential demand in the U.S. market.
Gansu chili powder already proved the rule: when policy changes, orders double. From January to April 2026, chili powder exports to the U.S. surged 627% year-over-year—because the U.S. lifted reciprocal tariffs on 237 agricultural categories in November 2025.
If you're exporting freeze-dried vegetables, seasonings, frozen dumplings, or concentrated fruit juices—and they fall within the tariff cut candidate list—your quotes can drop, your margins can rise, and your competitiveness can return.
The tariff reduction framework covers "$30 billion or more," and isn't limited to agricultural products. The U.S. and China are currently soliciting input from companies on the specific product lists, with the U.S. side also seeking public comments. This means the list isn't fixed—it's still in the "fill-in-the-blanks" stage.
If you're in food packaging, food machinery, or seasoning raw materials—as long as your products are within the scope of discussion, tariff cuts are possible. What small exporters can do right now is: have your industry associations or chambers of commerce submit your product needs upward.
This might be the biggest—and most easily overlooked—impact on small exporters.
There's another key outcome from these consultations: the U.S. committed that future tariff levels on China cannot exceed the levels set under the Kuala Lumpur Joint Arrangement, and further unilateral tariffs should be eliminated through subsequent consultations.
In plain English: tariff policy over the past few years has been a roller coaster—imposed and removed at a moment's notice. Now both sides have committed to putting a "ceiling" on tariffs. For small exporters, this means: you can sign long-term contracts with confidence, hold inventory, and build your brand.
First, confirm whether your products fall within the "potential beneficiary" scope.
If you're in dairy, seafood, vegetables, or fruits—monitor the Ministry of Commerce website and the Trade Council's follow-up lists closely, and update your quotes as soon as new rates are announced.
Second, if you're in a relevant category but haven't been named yet—have your industry association submit your product for consideration.
The Ministry of Commerce is soliciting input from companies, industry associations, and local governments on the tariff reduction arrangements. Your voice could determine whether your product makes the list.
Third, don't wait until rates are finalized to start calculating.
Start your math now: if you qualify for MFN rates or even lower, how much can your costs drop? At what price point would you be most competitive? When the policy comes, will you be ready?
$30 billion isn't just a headline. Gansu chili powder surged 6x because the policy changed. Who gets the next wave depends on whether you're prepared now.
