BEIJING: China and the United States have agreed to reduce tariffs on $60 billion worth of goods traded between the two countries, covering products ranging from US agricultural commodities to Chinese household appliances and toys.
Under the agreement, each country has recommended $30 billion worth of non-sensitive trade for more favourable tariff treatment, US Trade Representative Jamieson Greer said in a statement on Sunday.
Greer said the arrangement would improve market access for about 30% of US exports to China.
The tariff reductions were among the key outcomes of the second summit this year between Chinese President Xi Jinping and US President Donald Trump, held in Washington last week. The two sides also agreed to extend their trade truce.
China targets agricultural and consumer products
One list released by the White House showed that China plans to reduce tariffs on several US agricultural products, including corn, wheat, sorghum, meat, dairy products, vegetable oils and meals.
Soybeans were not included in the list.
Beijing also plans to lower levies on US fish and seafood, logs and wood products, cosmetics and medical devices.
In return, Washington will reduce tariffs on a range of Chinese consumer products, including small household appliances such as coffee makers and toasters.
The list also covers tableware, blankets, bed linens, toys, fireworks, artificial flowers, Christmas tree lights and other holiday decorations, as well as children’s car seats.
Trade truce extended
China’s Commerce Ministry said Monday that the two-month extension of the trade truce through January 10 would give both countries additional time to assess their existing arrangements and explore ways to strengthen economic and trade cooperation.
The ministry said the extension would also provide a relatively stable and predictable policy environment for businesses and allow the two sides to continue discussions.
China and the US will hold regular talks on potential investment opportunities and trade barriers, while working to improve policy transparency and address concerns raised by companies, the ministry said.
Despite the latest agreements, Chinese stocks fell sharply on Monday as investors remained concerned about the limited details emerging from the summit. Technology stocks were also pressured by a bipartisan US push to restrict Chinese components in data centres.
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Agriculture and coal deals
China’s selection of products for tariff reductions appears aligned with Washington’s stated expectation that Beijing will purchase $17 billion worth of US agricultural goods.
China has already resumed large-scale purchases of US soybeans under an earlier agreement that called for annual purchases of 25 million metric tons.
The two countries will also establish an agriculture working group under a trade council. Its first meeting is expected before the end of the year and will focus on two-way market access and agricultural regulations.
The summit also produced an agreement for China to import 10 million metric tons of US coal annually in 2027 and 2028, according to a White House release. The volume represents roughly 2% of China’s annual coal imports.
Liquefied natural gas and oil were not included in the new list.
China’s Commerce Ministry said US coal imports could supplement the country’s domestic coal supply while supporting income and employment in the US coal industry.
AI, financial services and flights
The two countries also agreed to establish a communication channel for artificial intelligence-related incidents and hold a follow-up dialogue by the end of November.
China will examine applications from foreign financial services institutions, including US-backed firms, seeking permission to conduct business and open branches in the country.
Beijing and Washington will also continue discussions on increasing direct flights between China and the United States, according to the Chinese Commerce Ministry.
