China and US Agree to Cut Tariffs on $60 Billion in Goods

China and the United States have agreed to reduce tariffs on about $60 billion worth of goods traded between the two countries.

The agreement covers a wide range of products. These include US agricultural goods and Chinese household appliances, toys and other consumer products.

Tariff Cuts Target $60 Billion in Trade

US Trade Representative Jamieson Greer said both countries recommended $30 billion in non-sensitive trade for more favourable tariff treatment.

Greer said the move would improve US market access in China. It could cover about 30% of US exports to the Chinese market.

The tariff cuts formed part of a broader agreement reached during the latest meeting between US President Donald Trump and Chinese President Xi Jinping in Washington.

China plans to reduce tariffs on several US agricultural products. These include corn, wheat, sorghum, meat, dairy products, vegetable oils and meals.

However, soybeans were not included in the list.

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Beijing also plans lower duties on US seafood, wood products, cosmetics and medical devices.

Meanwhile, Washington will reduce tariffs on several Chinese consumer goods. The list includes coffee makers, toasters, tableware, blankets and bed linens.

Toys, fireworks, artificial flowers and Christmas decorations are also included. Children’s car seats are among the listed products.

Trade Truce Extended

China’s Commerce Ministry said the two countries agreed to extend their trade truce until January 10.

The ministry said the extension will give both sides more time to assess their economic and trade arrangements.

It will also provide a more stable environment for businesses, according to the ministry.

Both countries plan regular talks on investment opportunities and trade barriers. They will also discuss policy transparency and concerns raised by companies.

Despite the agreement, Chinese stocks fell sharply on Monday.

Technology shares came under pressure after a bipartisan push in the United States to restrict Chinese components in data centres.

The benchmark blue-chip index also fell more than 2%.

Agriculture and Coal Deals

China’s tariff list could help meet its agricultural purchase commitments announced by the White House.

The United States has said China committed to buying $17 billion in agricultural products.

China has also resumed large-scale purchases of US soybeans under an earlier agreement.

Both countries will establish an agriculture working group under their trade council. Its first meeting is expected before the end of the year.

The group will discuss market access and agricultural regulations.

The summit also produced a coal agreement. China will import 10 million metric tons of US coal annually in 2027 and 2028.

Liquefied natural gas and oil were not included in the agreement.

China’s Commerce Ministry said US coal could supplement its domestic supply. It also said the deal could support jobs and income in the US coal industry.

AI, Finance and Direct Flights

China and the United States also agreed to maintain communication on artificial intelligence.

The two sides will create a channel for discussing AI-related incidents. A follow-up dialogue is expected by the end of November.

China will also consider approvals for foreign financial institutions. The move includes firms with US capital seeking to operate or open branches in China.

In addition, both countries will continue discussions on increasing direct flights between China and the United States.