Key takeaways

• A 90-day tariff truce with China has paused new import taxes for thousands of U.S. consumer goods.
• A U.S.–EU trade deal locks in lower tariffs and increases European purchases of U.S. exports.
• The latest trade decisions may help stabilize prices on appliances, electronics, cars, and groceries through the fall.

Tariffs on Chinese and European goods aren’t rising for now, which could help stabilize prices on a range of household items heading into fall.

Tariff talks that once sent prices soaring may be showing signs of cooling. The U.S. has extended a 90-day tariff truce with China and finalized a broad new trade agreement with the European Union. These moves may signal a shift toward stability in global trade and could help stabilize prices domestically.

Although the long-term picture on tariffs isn’t completely clear, the short-term effect may be easier to see: Households grappling with price increases may catch a break in the form of price certainty. Importers have been looking for a clear answer on tariffs and, although the truces are temporary, may look to these developments for a sense of short- to medium-term clarity.

Pressing pause on tariffs

The latest decision to halt additional tariffs on China may affect more than $300 billion in imports.¹ This 90-day extension is part of ongoing negotiations between Washington and Beijing aimed at recalibrating the two countries’ trade and diplomatic relationships. If the truce had not been extended, significant tariffs on items like laptops, toys, and household appliances could have spiked as high as 245%.²

The holdoff gives manufacturers a temporary pause from impending tariffs. This may allow some to manage their current inventory without having to pass higher tariff-related costs onto consumers. The extension will remain in place through November 20, 2025.³

This window could be particularly helpful for back-to-school and holiday shopping seasons, as many retailers begin to stockpile inventory ahead of these and other fall shopping events. The reprieve provides a breathing period for potential economic impacts, and U.S. trade officials say the decision was influenced in part by concerns about inflation and seasonal demand for goods.⁴

Read more: How could tariffs impact my wallet and my portfolio? Get a Sense Check

An EU trade deal that avoids the highest tariffs

Elsewhere in the world of global trade, the U.S. reached a formal trade agreement with the European Union that establishes a 15% cutoff on tariffs for most EU imports.⁵ This is half the proposed rate proposed earlier this year. In return, the EU has committed more than $600 billion to investments in the U.S., as well as large-scale purchases of good, liquified natural gas, and defense equipment.⁶

The deal helps avoid further tensions between the two trading partners, each among the world’s largest.⁷ The deal is likely to settle prices for consumers as well, with European exports such as vehicles, wine, and specialty foods all seeing price stability with higher tariffs off the table.⁸

For households, consistent trade rules help supply chains run more smoothly. This can create more stable prices since manufacturers can plan production based on demand first, rather than trade policy.

How new tariff talks could affect families

The impact of these new tariff moves could be different for every family. That said, there are some early signs that popular categories may see slower price growth — or even potential declines.

• Appliances and electronics: The majority of these items are produced in China or assembled with Chinese components. The tariff pause could stave off price increases that would have otherwise come with new models this fall and seasonal sales.
• Vehicles and auto parts: The EU trade deal may help prevent higher prices on imported vehicles as well as aftermarket parts.
• Home goods and furnishings: Lighting fixtures, furniture, and textiles have all faced steep tariffs in previous years. The trade truce with China could help resist further increases.
• Groceries and specialty foods: Imported items from the EU, such as cheeses, olive oils, and wine may remain steady under the 15% tariff cap.

Full-on price cuts may not be following trade deals and tariff pauses, but they could create more stability for businesses to accurately forecast consumer prices.

Washington’s shift from broad tariffs to targeted negotiations could help reduce the risk of sudden price jumps for essentials and big-ticket items. This may help consumers plan with more confidence, dialing in how much to save for big purchases and budget for everyday expenses.

Read more: The 6 items you may want to buy before tariffs return

What’s next for trade, tariffs, and truces

The next round of U.S.–China trade talks are expected before the postponement ends in November.⁹ Officials on both sides have indicated interest in establishing a more durable framework, even though significant disagreements remain. The U.S.–EU deal takes effect this fall. Some provisions will be phased in across several quarters.

Families may be able to take some comfort in the calm. Tariffs are no longer rising on key goods, and trade tensions have eased for now. The cost of everyday items may be easier to predict as well. That’s good news for global markets — as well as household budgets.