US, China Cut Tariffs on USD30B in Goods Each in Sweeping Trade Deal
The deal was among the results of economic and trade talks between Chinese and US delegations in New York and Washington from Sept. 20-23, China's Commerce Ministry (MOFCOM) said Monday.
Washington released product lists spelling out which goods will receive reduced duties. More than 1,600 Chinese products entering the US are covered, spanning 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.
On the Chinese side, the US said Beijing will lower tariffs on 77 categories of American goods. 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 products are also covered.
Both countries will put the reductions into effect at the same time, once each completes the procedures required under its domestic laws, MOFCOM said.
“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 lowered 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 governments also agreed to create a bilateral trade council under their economic and trade consultation mechanism, with the promotion of two-way trade as its main mission.
US coal exports to China will fall under the reciprocal $30 billion tariff-reduction framework, which MOFCOM said would ease Chinese purchases of American 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 set up. The agricultural group is expected to convene its first meeting 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 headed by Chinese Vice Premier He Lifeng and US Treasury Secretary Scott Bessent.
The next AI dialogue is expected before the end of November, and the two sides agreed to set up a communication channel for AI-related incidents.
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