By Rajwa Quasim
The U.S. and China have agreed to reduce tariffs on about $60 billion worth of goods, marking a step toward easing trade tensions following a meeting between President Donald Trump and Chinese President Xi Jinping.
Under the arrangement, each country has identified about $30 billion worth of goods that could receive more favorable tariff treatment. The agreement focuses largely on non-sensitive products rather than strategically important industries, although a clear timeline for when the lower tariffs will take effect has not been announced.
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The list covers 1,619 U.S. product lines, including agricultural products, meat, seafood, cosmetics, medical equipment, dairy products and grains. The U.S. list covers 77 categories of Chinese goods, including fireworks, microwave ovens, fishhooks, toys, tableware, holiday decorations, household products and small appliances.
According to the White House, China has agreed to import at least 10 million metric tons of U.S. coal in both 2027 and 2028.
The U.S.-China Board of Trade, established by the two countries in May, will oversee efforts to optimize bilateral trade in non-sensitive goods. The government-to-government body consists of U.S. and Chinese officials and is expected to meet at least quarterly.
Ambassador Jamieson Greer said in a statement, “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.”
The two countries had previously imposed tariffs exceeding 40% on some goods from each other. Under an extended trade truce, the overall tariff rates remain at about 30% on Chinese imports into the U.S. and 10% on U.S. goods entering China. The latest arrangement would remove country-specific surcharges and reduce duties on more than 90% of the covered products to most-favored-nation levels.
China’s Commerce Ministry said the arrangement would help stabilize China-U.S. trade, improve conditions for Chinese exports to the U.S. and strengthen cooperation in agriculture, energy, manufacturing and consumer goods.
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The agreement addresses only part of the broader trade relationship. The U.S. goods trade deficit with China was about $295 billion in 2024, while trade policy analyst Deborah Elms of the Hinrich Foundation said the $60 billion package represents only a portion of the overall trade picture.
Beyond trade, the two countries also agreed to establish a communication channel for sharing information about AI-related incidents, even as they compete for technological leadership.
Trump and Xi are also expected to meet again at the Asia-Pacific Economic Cooperation summit in Shenzhen and the G20 summit in Florida in December.