Trade wars, it turns out, can also be unwound one product category at a time. U.S. Trade Representative Jamieson Greer said Friday that the U.S. and China have reached an agreement on a subset of goods, a modest but real step toward cooling the tariff fight between the world's two largest economies.

Speaking on CNBC's "Squawk Box," Greer said the deal covers goods that will be traded on more favorable terms. The list includes American agricultural products and medical devices, plus non-sensitive Chinese consumer goods. "We've actually reached agreement with the Chinese on a number of these things," he said.

The goal, per Greer, is to establish "preferential" trade terms for certain goods, which could shield them from future tariffs or the next round of a broader trade dispute. Think of it as carving out a safe lane while the bigger traffic jam continues.

Investors won't have to wait long for the fine print. Greer said the Trump administration plans to provide "a lot more details" on Monday, offering a look at what several weeks of negotiations have actually produced.

US-China Talks Seek Broader Deal

The comments follow a state dinner hosted by President Donald Trump for Chinese President Xi Jinping at the White House on Thursday.

Before that, Treasury Secretary Scott Bessent announced that the U.S. and China agreed to extend their trade truce, the Busan Agreement, by two months to Jan. 10. The extension buys both sides more time to work toward a potentially larger trade deal.

On the agricultural front, China is on track to meet its commitment to buy 25 million metric tons of U.S. soybeans annually, with nearly 10 million tons confirmed by Sept. 10 and additional purchases likely, Reuters reported Thursday, citing the U.S. Department of Agriculture.

The broader pledge to import $17 billion annually in other U.S. farm goods, however, remains uncertain. China has yet to buy U.S. corn for the current season, and sorghum purchases have lagged expectations, the report stated. The National Sorghum Producers is urging Trump to secure a binding annual commitment for China to buy 5 million to 7 million tons of U.S. sorghum.

So the truce has a pulse, and Monday should tell us how strong it is.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by MarketDash editors.