China, US agree to cut tariffs on US$60 billion of goods including agriculture, household items

[BEIJING] China and the US have agreed to cut tariffs imposed on US$60 billion worth of goods imported from each other, on an array of products ranging from American corn to cosmetics, and from Chinese household appliances to toys.

Under the US-China Board of Trade, both countries have each recommended US$30 billion of trade in non-sensitive goods for more favourable tariff treatment, US Trade Representative Jamieson Greer said in a statement on Sunday (Sep 27).

For the US, that was “unlocking improved market access” for about 30 per cent of US exports to China, he said.

The reciprocal tariff reduction as well as an extension of a trade truce were among the key takeaways from the second summit in 2026 between Chinese President Xi Jinping and US President Donald Trump, hosted in Washington last week.

One of two lists from the White House showed that China planned to trim duties on a variety of US agricultural goods including corn, wheat, sorghum, meat, dairy, vegetable oils and meals. It did not include soybeans.

Beijing will also look to reduce levies on US fish and seafood, logs and wood products, cosmetics and medical devices.

In another list were Washington’s reciprocal tariff cuts for Chinese small appliances such as coffee makers and toasters, tableware, blankets and bed linens.

The lists also included toys, fireworks, artificial flowers, Christmas tree lamps and other holiday decorations, and children’s car seats.

Longer trade truce

China’s Commerce Ministry said on Monday a two-month extension of a trade truce with the US through to Jan 10, 2027, would provide room for both sides to evaluate their ongoing arrangement to resolve economic and trade issues, while considering how to advance on those fronts.

SEE ALSO

Trump-Xi summit buys 100 days of calm that South-east Asia could use

China, US agree to AI dialogue, tariff cuts on US$30 billion in goods during Xi visit

‘Pandas are cute but US needs rare earth magnets’: Trump-Xi meet so far leaves analysts wanting more

The extension also provides a “relatively stable and predictable policy environment” for cooperation among companies and continued active discussions.

Both sides will hold regular talks on potential investment opportunities and barriers, enhancing policy transparency and predictability, and responding to enterprises’ concerns, the ministry said.

Stocks fell sharply in China on Monday, with investors having few concrete details to cheer from the leaders’ summit and underlying tensions resurfacing.

Technology stocks fell on a bipartisan US push to ban Chinese components from data centres and the benchmark blue-chip index slid more than 2 per cent to a one-year low.

Agriculture and coal

China’s choice of products for tariff cuts looks designed to help Beijing meet what the White House says is a US$17 billion commitment to buy agricultural goods.

China has already resumed large-scale buying of US soybeans under a deal struck last year to buy 25 million tonnes annually.

Both countries will set up an agriculture working group under a trade council, which will hold its first meeting before 2026 ends to discuss two-way market access and regulation, the Commerce Ministry said.

The presidential summit also yielded an agreement for China to import 10 million tonnes of coal annually from the US in 2027 and 2028, the White House release showed. That amount roughly equals 2 per cent of China’s coal imports each year.

Liquefied natural gas and oil were not on the list.

“Importing US coal is not only a beneficial supplement to China’s domestic coal market, but also brings stable economic income and employment to the US coal industry,” the Chinese ministry said.

AI, financial firms and direct flights

On artificial intelligence, both sides agreed on a communication channel for incidents and will hold a follow-up dialogue by the end of November.

China will also examine and approve foreign financial services institutions, including those with US capital, to conduct business and open branches in China.

There will also be continued communication on increasing flights between China and the US, the Commerce Ministry said in its statement. REUTERS