China and the United States have agreed to reduce tariffs on $60bn worth of goods traded between both countries, covering products ranging from US agricultural goods to Chinese household items and toys.
US Trade Representative Jamieson Greer said on Sunday that both countries had each recommended $30bn worth of non-sensitive goods for lower tariff treatment under the US-China Board of Trade.
The tariff cuts were among the key outcomes of the second meeting this year between US President Donald Trump and Chinese President Xi Jinping, held in Washington last week.
For the US, the deal is expected to improve market access for about 30 per cent of its exports to China, Greer said.
China plans to reduce tariffs on several US agricultural products, including corn, wheat, sorghum, meat, dairy products, vegetable oils and meals.
Soybeans, however, were not included on the list.
Beijing will also consider lower duties on US fish and seafood, logs and wood products, cosmetics and medical devices.
The US, meanwhile, plans to cut tariffs on Chinese goods including coffee makers, toasters, tableware, blankets, bed linen, toys, fireworks, artificial flowers, Christmas lights and other decorations.
Children’s car seats are also included.
Trade truce extended
China’s Commerce Ministry said on Monday that the two-month extension of the trade truce with the US, now running until January 10, would give both countries more time to review their trade arrangements and discuss further steps.
The ministry said the extension would also provide businesses with a more stable and predictable environment.
Both countries are expected to hold regular talks on investment opportunities, trade barriers, policy transparency and concerns raised by companies.
Agriculture and coal
The tariff cuts on US agricultural products are expected to help China meet a $17bn agricultural purchase commitment announced by the White House.
China has already resumed large-scale purchases of US soybeans under an earlier agreement to buy 25 million metric tonnes annually.
Both countries will also establish an agriculture working group under the trade council. Its first meeting is expected before the end of the year and will focus on market access and regulations.
The summit also produced an agreement for China to import 10 million metric tonnes of US coal annually in 2027 and 2028.
The volume represents about two per cent of China’s annual coal imports.
China’s Commerce Ministry said US coal would supplement domestic supplies while providing income and jobs for the American coal industry.
Liquefied natural gas and crude oil were not included in the agreement.
AI, banks and flights
China and the US also agreed to establish a communication channel for artificial intelligence-related incidents and hold another round of talks by the end of November.
Beijing will also review applications from foreign financial institutions, including US-backed firms, seeking to operate and open branches in China.
Both sides will continue discussions on increasing direct flights between China and the United States.
Despite the agreements, Chinese stocks fell sharply on Monday, with investors expressing concerns about the limited details from the summit and continued tensions between the two countries.
Technology stocks also declined amid a bipartisan push in the US to restrict Chinese components in data centres.
