US, China Cut Tariffs on USD30B in Goods Each in New Trade Deal
The deal was among the outcomes of economic and trade talks between Chinese and US teams in New York and Washington from Sept. 20-23, China's Commerce Ministry (MOFCOM) said on Monday.
Washington released lists of the goods that will receive reduced tariff treatment. They cover more than 1,600 Chinese products, including household items such as plates, kitchenware, bed and table linens, microwave ovens and other small electrical appliances, along with toys, sporting goods, children's products, games and seasonal decorations.
Under the arrangement, Beijing will lower tariffs on 77 categories of American products. These include beef, lamb, poultry, seafood and dairy, as well as wheat, corn, rice and other grains. Coal, timber, fruit, vegetables, medical equipment and other agricultural, energy and industrial goods are also covered.
MOFCOM said both sides will put the reductions into effect at the same time, once each has completed the procedures required under its domestic laws.
“The Trump administration will continue to pursue fair, balanced, and reciprocal trade with China by ensuring compliance with commitments on agricultural and energy purchases, pursuing balanced trade in non-sensitive goods, and securing market access for American farmers, manufacturers, businesses, and workers,” US Trade Representative Jamieson Greer said.
The US side said approximately 90% of the covered products will see tariffs cut to MFN rates.
“This arrangement will help to further stabilize China-US economic and trade relations and create favorable conditions for China’s exports of relevant products to the US,” MOFCOM said.
The two countries also agreed to set up a bilateral trade council under their economic and trade consultation mechanism, with facilitating bilateral trade as its main task.
US coal exports to China will fall under the reciprocal $30 billion tariff-reduction framework, which MOFCOM said would help Chinese imports of US coal in 2027 and 2028.
An investment council and an agricultural working group, both jointly led by MOFCOM and the Office of the US Trade Representative, will also be created. The agricultural working group is expected to meet for the first time before the end of 2026.
The ministry said the sides additionally reached an agreement in principle on financial services and launched an artificial intelligence dialogue led by Chinese Vice Premier He Lifeng and US Treasury Secretary Scott Bessent.
The next AI dialogue is expected before the end of November. The two sides also agreed to create a communication channel for AI-related incidents.
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