China and US discuss cutting tariffs on agriculture and energy
[BEIJING] The US and China are discussing slashing tariffs on certain goods, including on American energy and agricultural shipments – a potential sign the leaders’ summit next week will lead to an extension of the one-year trade truce.
The meetings between the two sides are also likely to result in an agreement to lower duties on Chinese inputs for manufacturers, according to people familiar with the matter. The moves are expected to be carried out under an earlier plan for reciprocal tariff cuts on roughly US$30 billion in trade.
Most-favoured-nation rates would be applied to some items from China, said the people, who requested anonymity in order to discuss private conversations.
Highlighting the central role that agriculture is likely to play in the talks, representatives from state-owned food trading firm Cofco may join Chinese President Xi Jinping when he travels to the US to meet with counterpart Donald Trump, according to two people familiar with the matter. More than a dozen firms are also being considered for a CEO delegation, though a final decision has not been reached, according to the people.
While such a deal would be limited – bilateral trade hit more than US$400 billion in the first eight months of the year – it would signal that the sides are engaging enough to maintain the tariff truce reached in October 2025.
An agreement would also show that Washington and Beijing can keep ties on track despite an expanding divide on how to handle artificial intelligence, export controls and the status of Taiwan. And it would signal that the Board of Trade, announced when Trump met Xi in Beijing in May, is able to produce some results.
China is making steady progress on its pledge to buy 25 million tons of US soybeans annually through 2028, recently passing the halfway mark for this year – a bright spot in trade relations between the world’s two largest economies. Beijing has also committed to buy at least US$17 billion of US agricultural products annually on top of the soybean purchases, with the target prorated for 2026, the White House said in May.
The Office of the US Trade Representative, China’s Ministry of Commerce and Cofco did not respond to requests for comment.
Trump has said Xi would visit the White House on Sept 24, an event that would also include a state dinner. China hasn’t confirmed dates for Xi’s travel yet, something it tends to do only days in advance.
For his state visit in May, Trump brought more than a dozen CEOs to China, including Nvidia Corp’s Jensen Huang and Tesla’s Elon Musk. The executives met with Li Qiang, and Xi told them that US enterprises “are deeply involved in China’s reform and opening up, a process from which both sides have benefited.”
US Trade Representative Jamieson Greer told Fox News this month that he expected to see “announcements on agriculture and non-tariff barriers related to agriculture” during Xi’s visit.
Greer also said he expected the Board of Trade to make other announcements on toys, games and fireworks that might protect them from future tariffs or other trade measures. BLOOMBERG
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
Share with us your feedback on BT's products and services
