China and the United States have agreed to reduce tariffs on around $60 billion worth of goods imported from each other, marking another step toward easing trade tensions between the world’s two largest economies.

The tariff reductions will cover a wide range of products, including U.S. corn and other agricultural goods, as well as Chinese household appliances, cosmetics and toys.

The agreement comes as Washington and Beijing seek to maintain a broader trade truce and create room for further negotiations on their economic relationship. Reuters reported that China said the extension of the trade truce would provide space for the two sides to advance discussions.

The latest measures affect businesses and consumers on both sides of the Pacific, with tariffs having increased costs and complicated supply chains during years of heightened trade tensions.

Agriculture is an important component of the agreement, with increased access for U.S. farm products potentially providing additional opportunities for American exporters in the Chinese market. At the same time, Chinese consumer goods, including household products and toys, are among the goods affected by the tariff changes.

The agreement follows a period of negotiations between senior officials from Washington and Beijing. Trade remains closely connected to wider discussions covering technology, artificial intelligence, supply chains and national security.

The two governments continue to face significant differences on issues including technology controls and Taiwan, even as both sides pursue areas where cooperation and economic engagement remain possible.

The tariff reductions therefore represent part of a broader effort to manage economic tensions while keeping negotiations between Washington and Beijing open.

Businesses and financial markets will be watching closely to see whether the latest agreement leads to further reductions in trade barriers and greater stability in global supply chains.