China and the United States have reached a new agreement to reduce tariffs on around $60 billion worth of goods traded between the two countries, covering a wide range of agricultural, household and consumer products.
Under the arrangement, each country has identified about $30 billion in non-sensitive goods that could receive more favourable tariff treatment. US Trade Representative Jamieson Greer said the move could improve market access for roughly 30% of US exports to China.
The tariff changes were among the main outcomes of a recent meeting between Chinese President Xi Jinping and US President Donald Trump in Washington. The two governments also agreed to extend their existing trade truce, giving officials additional time to work through broader economic disagreements.
Agricultural Products Included
China is expected to lower tariffs on several US agricultural products, including corn, wheat, sorghum, meat, dairy products, vegetable oils and related meals. Soybeans were notably absent from the new tariff list.
Other American products that could benefit include seafood, logs and wood products, cosmetics and medical equipment.
The United States, meanwhile, plans to reduce tariffs on a selection of Chinese consumer goods. These include small household appliances such as coffee makers and toasters, as well as tableware, blankets, bed linens and toys.
The agreement also covers products such as artificial flowers, Christmas lights, fireworks, holiday decorations and children's car seats.
Trade Truce Extended
China's commerce ministry said the two-month extension of the trade truce, which runs through January 10, will give both countries more time to assess existing agreements and negotiate further measures.
Beijing said the extension should provide businesses with a more stable and predictable environment. The two sides also plan to discuss investment opportunities, trade barriers and regulatory concerns through regular talks.
Despite the agreements, Chinese markets reacted cautiously. Chinese stocks declined sharply after the summit as investors looked for more specific details. Technology shares were also affected by growing US efforts to restrict the use of Chinese components in data centres.
Agriculture and Energy Deals
The tariff changes are expected to support China's stated commitment to purchase US agricultural products. The countries will also establish an agriculture working group to discuss market access and regulatory issues.
Another agreement calls for China to import 10 million metric tons of US coal annually in 2027 and 2028. According to the White House, this would represent about 2% of China's annual coal imports. Oil and liquefied natural gas were not included in the arrangement.
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The two governments also agreed to maintain communication on artificial intelligence-related incidents, with another dialogue expected by the end of November.
China said it would review applications from foreign financial institutions, including US-backed companies, seeking to operate and establish branches in the country.
Both sides will also continue discussions aimed at increasing direct flights between China and the United States.
Overall, the latest agreements signal an effort by Washington and Beijing to stabilize trade relations while leaving several major economic and strategic disagreements unresolved.
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