Items Set To Drop in Price Post-China Deal in 2025

The U.S. and China’s 90-day tariff reduction deal, announced May 12, 2025, is poised to bring some relief to American consumers after months of rising prices .

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Under the agreement, U.S. tariffs on Chinese goods drop from 145% to 30%, while China lowers its tariffs on U.S. products from 125% to 10%. Economists predict this temporary truce will stabilize supply chains and reduce costs for electronics, home goods, apparel, auto parts and medical supplies, at least for now.

While long-term uncertainty remains, here are five categories where shoppers could see immediate price drops .

Consumer Electronics: Phones, Laptops and Accessories

The tech sector is a major beneficiary of the tariff rollback. U.S. tariffs on Chinese-made smartphones and laptops dropped from 145% to 30%, easing costs for companies like Apple. While many electronics were exempt from the initial tariffs, according to CNN, there were plans for further tariffs that would impact them — but the tariff reduction could prevent those significant price hikes.

Mid-range laptops could drop by $150-$200 by late summer, as retailers restock inventory delayed by earlier tariffs. Apple, which manufactures 80% of its iPhones in China, may avoid price increases of up to 85%, predicted by Omdia, if exemptions hold.

However, long-term relief depends on broader trade negotiations post-90 days.

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Home Decor and Furniture

Tariffs on Chinese-made furniture and decor fell from 145% to 30%, offering respite for retailers and shoppers. The Home Furnishings Association reported that U.S. furniture retailers have already started adjusting prices as import costs drop.

Companies like Wayfair and RH saw their shares surge after the deal, reflecting expectations of lower expenses and more competitive pricing for consumers . Industry updates indicate that shoppers could see reductions on dining sets, sofas and bedroom furniture as early as July, provided the tariff rollback remains in effect.

Retailers delayed major restocking during the tariff spike, but many are now launching summer sales to move inventory and attract budget-conscious buyers. According to the Home Furnishings Association, some stores are offering discounts of 10% to 20% on select imported items.

If negotiations between the U.S. and China stall after the 90-day window, experts warn that prices could climb again in the fall.

Apparel and Accessories

The White House reduced the “de minimis” tariff on small shipments from 120% to 54%, benefiting fast fashion retailers like Shein and Temu who rely on Chinese manufacturing.

According to CNBC, this change is expected to lower costs for clothing and accessories under $800, with dress prices projected to fall by 10%-15% as stores restock summer inventories. Major brands like Nike and Adidas, which source a significant portion of their products from China, are also expected to pass on some savings to consumers.

Retailers are preparing for increased demand as shoppers look for deals on basics like T-shirts, sneakers and backpacks. Back-to-school sales could be especially competitive, with families benefiting from lower prices on essentials.

However, analysts caution that the savings may be short-lived if tariffs return after the 90-day period.

Auto Parts and Car Accessories

The U.S.-China deal reduced tariffs on many imported goods, but the 25% tariff on imported cars and parts remains in effect.

However, the agreement still provides relief for some automotive products, with prices for tires, batteries and electronics expected to stabilize. West Coast Shipping noted that while some specialty parts may face ongoing supply chain delays, common maintenance items could become more affordable this summer.

Car owners who postponed repairs during the tariff spike may find service bills more manageable as wholesale prices adjust. Industry sources say that aftermarket accessories, such as GPS units and dash cams, will see modest price reductions.

The full impact on the auto sector will depend on the outcome of further trade negotiations.

Medical Supplies and Personal Protective Equipment

Medical supplies and devices, including masks, gloves and syringes, are among the goods affected by the tariff truce.

Hospitals and clinics are closely watching for price relief on essential items, as lower import costs could help ease the financial burden on providers and patients.

Pharmacies and online retailers are also preparing to lower prices on first aid kits and home health devices. The Washington Post reported that insurance companies may adjust copays downward as supply costs drop.

While the situation remains fluid, Americans should see relief on many essential medical products by late summer if the deal holds.

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