China, US Agree to Tariff Cuts on $60 Billion in Goods

• China and the United States plan to reduce tariffs on $30 billion worth of each other’s goods, covering $60 billion in trade.
• The proposed cuts include US agricultural products and Chinese household items, toys and seasonal goods.
• The two countries have also extended their trade truce through January 10 and agreed to continue talks on investment, agriculture and other issues.

China and the United States have agreed to reduce tariffs on $60 billion worth of goods traded between them, following a summit between Presidents Xi Jinping and Donald Trump in Washington last week.

Under the arrangement, each country has recommended $30 billion worth of non-sensitive imports for more favourable tariff treatment. US Trade Representative Jamieson Greer said the changes would improve access to China’s market for about 30% of American exports to the country.

China’s proposed reductions cover US corn, wheat, sorghum, meat, dairy products, vegetable oils and animal feed ingredients. Soybeans were not included in the tariff list. Fish and seafood, timber products, cosmetics and medical devices are also among the US goods being considered.

The US list includes Chinese coffee makers, toasters, tableware, blankets, bed linens, toys, fireworks, artificial flowers, holiday decorations and children’s car seats.

The two governments also extended their trade truce by two months, through January 10. China’s commerce ministry said the extension would give both sides time to assess their current arrangements and continue discussions while providing businesses with a more predictable environment.

Regular talks will address investment opportunities, trade barriers and business concerns. The countries will also establish an agriculture working group, with its first meeting expected before the end of the year.

The tariff proposals could help China meet a $17 billion agricultural purchasing commitment cited by the White House. Beijing has already resumed large-scale purchases of US soybeans under a separate agreement to buy 25 million metric tonnes a year.

The summit also produced an agreement for China to import 10 million metric tonnes of US coal annually in 2027 and 2028. Oil and liquefied natural gas were not included in that arrangement.

Beyond trade in goods, the two sides agreed to create a communication channel for incidents involving artificial intelligence and hold further talks by the end of November. China said it would review applications from foreign financial firms, including US-backed institutions, seeking to operate or open branches in the country. Discussions on increasing direct flights will continue.

Chinese stocks fell sharply on Monday as investors sought more details on the agreements and renewed tensions weighed on technology shares. The country’s benchmark blue-chip index dropped more than 2% to a one-year low.